Revenue growth has accelerated to 11.6% year-over-year in Q4 2026, but this has been accompanied by a severe structural decline in gross margin, which has contracted from 31.4% in Q4 2024 to 23.8% in Q4 2026.
IBEX Limited (IBEX) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 |
|---|
| Sales/Revenue | 668.12M | 644.08M | 558.27M | 508.57M | 523.12M | 492.85M | 443.39M | 405.13M | 368.38M | 342.2M | 334.03M | 323.02M |
| Revenue Growth % | 15.25% | 15.37% | 9.77% | -2.78% | 6.14% | 11.16% | 9.44% | 9.98% | 7.65% | 2.44% | 3.41% | - |
| Cost of Goods Sold | 349.59M | 456.17M | 385.69M | 356.54M | 374.99M | 373.97M | 335.25M | 276.25M | 254.59M | 252.93M | 276.19M | 260.59M |
| COGS % of Revenue | - | 70.83% | 69.09% | 70.11% | 71.68% | 75.88% | 75.61% | 68.19% | 69.11% | 73.91% | 82.68% | 80.67% |
| Gross Profit | 143.31M | 187.91M | 172.58M | 152.03M | 148.13M | 118.88M | 108.14M | 128.88M | 113.79M | 89.28M | 57.84M | 62.43M |
| Gross Margin % | 21.45% | 29.17% | 30.91% | 29.89% | 28.32% | 24.12% | 24.39% | 31.81% | 30.89% | 26.09% | 17.32% | 19.33% |
| Gross Profit Growth % | - | 8.88% | 13.52% | 2.64% | 24.6% | 9.93% | -16.09% | 13.26% | 27.46% | 54.35% | -7.35% | - |
| Operating Expenses | 258.97M | 132.94M | 125.97M | 112.6M | 107.65M | 98.25M | 91.09M | 109.37M | 361.34M | 363.3M | 335.07M | 309.51M |
| OpEx % of Revenue | - | 20.64% | 22.56% | 22.14% | 20.58% | 19.94% | 20.54% | 27% | 98.09% | 106.17% | 100.31% | 95.82% |
| Selling, General & Admin | 116.6M | 113.02M | 108.74M | 93.14M | 88.66M | 80.15M | 0 | 350.42M | 321.72M | 332.93M | 306.12M | 281.72M |
| SG&A % of Revenue | - | 17.55% | 19.48% | 18.31% | 16.95% | 16.26% | - | 86.5% | 87.33% | 97.29% | 91.64% | 87.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 19.92M | 17.23M | 19.46M | 18.98M | 18.1M | 91.09M | -241.06M | 39.61M | 30.37M | 28.96M | 27.8M |
| Operating Income | 59.56M | 54.96M | 46.61M | 39.43M | 40.48M | 20.63M | 17.05M | 19.51M | 6.8M | -17.78M | -2.33M | 8.56M |
| Operating Margin % | 8.91% | 8.53% | 8.35% | 7.75% | 7.74% | 4.18% | 3.84% | 4.82% | 1.85% | -5.19% | -0.7% | 2.65% |
| Operating Income Growth % | - | 17.92% | 18.21% | -2.59% | 96.26% | 21% | -12.65% | 186.75% | 138.28% | -664.6% | -127.15% | - |
| EBITDA | 79.97M | 74.89M | 63.84M | 58.89M | 59.46M | 38.73M | 31.16M | 43.98M | 28.61M | -5.36M | 11.51M | 21.22M |
| EBITDA Margin % | 11.97% | 11.63% | 11.44% | 11.58% | 11.37% | 7.86% | 7.03% | 10.86% | 7.77% | -1.57% | 3.44% | 6.57% |
| EBITDA Growth % | 16.82% | 17.3% | 8.41% | -0.96% | 53.55% | 24.27% | -29.15% | 53.74% | 633.97% | -146.56% | -45.77% | - |
| D&A (Non-Cash Add-back) | 20.41M | 19.92M | 17.23M | 19.46M | 18.98M | 18.1M | 14.12M | 24.47M | 21.8M | 12.42M | 13.83M | 12.65M |
| EBIT | 43.53M | 57.26M | 47.57M | 41.5M | 41.12M | 20.67M | 24.19M | 19M | 6.8M | -18.91M | -3.44M | 7.1M |
| Net Interest Income | -483K | -670K | -679K | 1.56M | -152K | -1.25M | -9.03M | -9.43M | -7.71M | -3.09M | -6.39M | -5.13M |
| Interest Income | 407K | 266K | 955K | 2.07M | 640K | 43K | 0 | 0 | 7.25M | 0 | 0 | 0 |
| Interest Expense | 76K | -936K | 1.63M | 514K | 792K | 1.29M | 9.03M | 9.43M | 7.25M | 1.96M | 5.28M | 3.67M |
| Other Income/Expense | -511K | -670K | -679K | 1.56M | -152K | -1.25M | -1.89M | -9.43M | -7.71M | -3.09M | -6.39M | -5.13M |
| Pretax Income | 59.05M | 54.29M | 45.93M | 40.99M | 40.33M | 19.38M | 15.15M | 10.09M | -904K | -20.87M | -8.72M | 3.43M |
| Pretax Margin % | 8.84% | 8.43% | 8.23% | 8.06% | 7.71% | 3.93% | 3.42% | 2.49% | -0.25% | -6.1% | -2.61% | 1.06% |
| Income Tax | 1.07M | -7.96M | 9.07M | 7.33M | 8.74M | -2.08M | 2.06M | 2.31M | 3.62M | -108K | 295K | 1.86M |
| Effective Tax Rate % | 1.81% | -14.67% | 19.74% | 17.89% | 21.68% | -10.72% | 13.62% | 22.95% | -399.89% | 0.52% | -3.38% | 54.22% |
| Net Income | 49.07M | 46.33M | 36.86M | 33.66M | 31.58M | 21.46M | 13.09M | 7.77M | -4.52M | -15.88M | -9.01M | 1.57M |
| Net Margin % | 7.34% | 7.19% | 6.6% | 6.62% | 6.04% | 4.35% | 2.95% | 1.92% | -1.23% | -4.64% | -2.7% | 0.49% |
| Net Income Growth % | 18.59% | 25.68% | 9.54% | 6.56% | 47.19% | 63.92% | 68.46% | 271.94% | 71.54% | -76.2% | -673.71% | - |
| Net Income (Continuing) | 49.07M | 46.33M | 36.86M | 33.66M | 31.58M | 21.46M | 13.09M | 7.77M | -4.52M | -20.76M | -9.01M | 1.57M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.48M | 4.88M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20M | 20M | 3.64M |
| EPS (Diluted) | 3.27 | 3.13 | 2.36 | 1.84 | 1.67 | 1.15 | 0.15 | 0.44 | -0.26 | -0.90 | -0.51 | 0.09 |
| EPS Growth % | 18.7% | 32.63% | 28.26% | 10.18% | 45.22% | 666.67% | -65.91% | 269.23% | 71.11% | -76.47% | -674.32% | - |
| EPS (Basic) | - | 3.45 | 2.51 | 1.90 | 1.74 | 1.18 | 0.16 | 0.44 | -0.26 | -0.90 | -0.51 | 0.09 |
| Diluted Shares Outstanding | 14.99M | 14.81M | 15.72M | 18.25M | 18.89M | 18.72M | 18.38M | 17.69M | 17.69M | 17.69M | 17.69M | 17.69M |
| Basic Shares Outstanding | 13.32M | 13.41M | 14.68M | 17.7M | 18.2M | 18.23M | 17.65M | 17.69M | 17.69M | 17.69M | 17.69M | 17.69M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 417.76% |
Quick answers to the most common questions about buying IBEX stock.
For fiscal year 2026, IBEX Limited (IBEX) reported total revenue of $644.1M. This represents a 99.4% increase compared to $323.0M in 2016.
IBEX Limited (IBEX) is profitable, generating $46.3M in net income for the fiscal year ending 2026 with a net profit margin of 7.2%.
IBEX Limited (IBEX) reported an operating income of $55.0M, resulting in an operating profit margin of 8.5%. This margin reflects the operational efficiency of the business before interest and taxes.
IBEX Limited (IBEX) generated $187.9M in gross profit for the year, representing a gross profit margin of 29.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression amid rapid growth
Metrics are mathematically derived from official filings.
Revenue Growth Accelerating Amid Margin Pressure
IBEX's revenue growth has accelerated from a low single-digit rate to over 16% year-over-year in recent quarters, reaching $164.4M in Q3 2026, but this top-line expansion appears to be accompanied by a notable deterioration in profitability metrics.
The company's revenue trajectory shows a clear acceleration, moving from 4.1% growth in Q1 2025 to 16.8% in Q3 2026, suggesting successful market penetration or pricing actions. However, the rapid growth has coincided with a decline in operating margin from 10.3% in Q4 2024 to 9.8% in the most recent quarter, indicating that the incremental revenue may be coming at lower profitability or that cost growth is outpacing revenue gains. This pattern warrants investigation into the sustainability of the growth drivers and their impact on long-term earnings power.
Structural Margin Erosion Raises Concerns
IBEX's gross margin has contracted significantly from a stable 31.3-31.4% range in late 2024 to 23.8% in Q4 2026, a compression of approximately 750 basis points that suggests a fundamental shift in the company's cost structure or pricing dynamics.
The consistent gross margin decline across multiple quarters—falling from 30.6% in Q1 2025 to 23.8% in Q4 2026—represents a troubling structural deterioration rather than a one-time fluctuation. This compression appears particularly concerning given that IBEX operates in the IT services sector where peers like TaskUs maintain gross margins above 30%. The pattern may indicate increased competitive pressure on pricing, a shift toward lower-margin service offerings, or difficulty passing through rising labor and operational costs to customers.
Operating Leverage Undermined by Rising Costs
Despite revenue growth exceeding 16%, IBEX's operating income has grown more slowly, with operating margin declining from 10.3% to 9.8% over the past two years, suggesting the company is not achieving the expected scaling benefits from its expansion.
The company's operating leverage appears constrained, as operating income growth has not kept pace with revenue expansion. While SG&A expenses have shown some discipline as a percentage of revenue, the sharp decline in gross margin has overwhelmed any efficiency gains in overhead management. This dynamic suggests that IBEX may be investing heavily in growth or facing cost pressures that are preventing it from translating top-line gains into meaningful bottom-line improvements, a concerning trend for investors seeking scalable earnings growth.
Cost Structure Shifting Toward Lower Profitability
IBEX's cost of goods sold has increased from $85.4M in Q4 2024 to $125.2M in Q4 2026, representing a 47% increase that significantly outpaces the 32% revenue growth over the same period, indicating a fundamental deterioration in cost efficiency.
The disproportionate increase in COGS relative to revenue suggests IBEX may be experiencing rising input costs, operational inefficiencies, or a shift toward more labor-intensive or complex service delivery models. The pattern is particularly evident when comparing quarterly periods: while revenue grew from $124.5M to $164.3M (32% increase), COGS expanded from $85.4M to $125.2M (47% increase). This cost structure evolution appears to be the primary driver of the company's margin compression and suggests that management may need to implement significant cost optimization initiatives to restore historical profitability levels.
Unsustainable Growth-Margin Tradeoff
The most significant analytical challenge to IBEX's income statement narrative is the apparent inverse relationship between revenue growth acceleration and margin expansion, which suggests the company may be sacrificing profitability for market share in ways that could impair long-term value creation.
Short-sellers would likely focus on the accelerating revenue growth coinciding with deteriorating margins as evidence of potentially unsustainable business practices. The 750+ basis point gross margin compression from late 2024 to Q4 2026 raises questions about pricing power, competitive positioning, and the quality of incremental revenue. Furthermore, the volatility in EPS growth rates—from 133.3% to -10.6%—combined with inconsistent stock-based compensation expenses suggests earnings quality concerns. Investors should monitor whether this growth strategy is building a sustainable competitive advantage or merely creating the appearance of progress at the expense of fundamental profitability.