0001720420-26-000011
SEC filingIBEX delivered strong Q3 FY2026 results with revenue growth of 16.8% and net income up 27.3%, driven by higher-margin offshore mix and cost discipline.
Net cash provided by operating activities was $34.2 million, nearly double the $17.7 million in the prior year quarter, reflecting strong cash generation from improved profitability and working capital management. Capital expenditures totaled $24.6 million, up from $13.2 million in the prior year, primarily for new capital additions to support offshore capacity expansion and IT equipment. The increase in capex was partially offset by lower depreciation expense due to a rise in fully depreciated assets. Free cash flow, defined as operating cash flow less capital expenditures, was $9.5 million. The company has funded its capital investments and share repurchases from existing cash balances, and expects to continue funding future repurchases with cash on hand.
Our future liquidity requirements will depend on factors including our growth rate and the timing and extent of spending for capacity expansion and other strategic initiatives. The increase in cost of services was primarily due to higher payroll and related costs, reseller commissions, lead expenses, and IT, facility, and local transportation expenses. However, the company's focus on higher-margin offshore mix and disciplined cost management supported margin expansion. As volume of interactions increases, utilization of workstations improves, driving higher operating margins. Conversely, a decline in a client's business could shift volume to lower-cost geographies, impacting margins. We continue to invest in offshore capacity to capture growth opportunities while maintaining cost discipline.