IBEX Ltd
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
IBEX$49.52+15.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001628280-25-023847
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001720420-25-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 114 current paragraphs.
63 unchanged; 43 reworded; 7 added; 40 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
New Client Wins
Current report
Facility expenses were $12.8 million during the three months ended September 30, 2025, an increase of $0.3 million, or 2.7%, compared to the prior year quarter, primarily driven by expansions in our offshore regions.
Current report
Interest expense during the three months ended September 30, 2025 was $0.2 million, consistent with the prior year quarter.
Current report
Net income margin was 8.0% for the three months ended September 30, 2025 compared to 5.8% during the prior year quarter. This increase was primarily driven by revenue growth in our higher margin offshore regions, lower SG&A expenses as a percentage of revenue, lower income tax expenses, and foreign currency gains during the three months ended September 30, 2025 compared to the same quarter in the prior year.
Current report
Adjusted EBITDA margin was 12.9% for the three months ended September 30, 2025 compared to 12.0% during the prior year quarter. This increase was primarily driven by revenue growth in our higher margin offshore regions and lower SG&A expenses as a percentage of revenue during the three months ended September 30, 2025 compared to the same quarter in the prior year.
Current report
Net cash
Current report
Net cash inflow from operating activities during the three months ended September 30, 2025 increased to $15.7 million compared to $7.8 million during the prior year quarter, which was driven by an increase in our revenues which drove increased profitability, as well as lower use of working capital.
Removed paragraphs (40)
Previous report
The Company delivered revenues of $140.7 million during the three months ended March 31, 2025, an 11.0% increase compared to the prior year due to growth in the HealthTech, Travel, Transportation & Logistics, Retail & E-commerce, and Other verticals, partially offset by decreases in our FinTech vertical. Net income during the three months ended March 31, 2025 was $10.5 million, a 1.5% increase from $10.3 million during the same quarter in the prior year. Fully diluted earnings per share for the three months ended March 31, 2025 of $0.73 increased from $0.57 during the prior year quarter. These increases were driven by winning new clients and market share within our embedded base client in our higher margin offshore regions, improved gross margin performance, and fewer diluted shares outstanding compared to the prior year quarter.
Previous report
Sales Cycles and New Client Wins
Previous report
Interest expense during the three months ended March 31, 2025 was $0.4 million, an increase of $0.3 million when compared to the prior year quarter, and consisted of interest on borrowings of $0.2 million, interest on finance leases of $0.1 million, and amortization of deferred debt issuance costs of $0.1 million.
Previous report
Nine Months Ended March 31, 2025 and 2024
Previous report
Revenue
Previous report
Our revenue was $411.1 million for the nine months ended March 31, 2025, an increase of $27.1 million, or 7.1%, compared to the same period in the prior year. This increase was primarily driven by increases in our HealthTech vertical of $12.2 million, or 24.7%, Travel, Transportation & Logistics vertical of $7.5 million, or 15.1%, Retail & E-commerce vertical of $8.8 million, or 8.9%, and Other vertical of $6.8 million, or 16.6%, due to growth in our digital acquisition business, compared to the same period in the prior year. These increases were partially offset by decreases in the FinTech vertical of $7.2 million, or 13.3%, compared to the prior year period.
Previous report
Operating Expenses
Previous report
Cost of services
Previous report
Payroll and related costs were $216.9 million during the nine months ended March 31, 2025, an increase of $7.8 million, or 3.7%, compared to the prior year period, due to increased revenues during the current year. As a percent of revenue, payroll cost decreased to 52.8% during the nine months ended March 31, 2025 compared to 54.5% during the prior year period, reflecting the continuing trend towards lower cost regions.
Previous report
IT expenses were $4.8 million during the nine months ended March 31, 2025, an increase of $1.0 million or 28.2%, compared to the prior year period, primarily due to additional software license fees.
Previous report
Telecom and local transportation expenses were $9.6 million during the nine months ended March 31, 2025, an increase of $0.5 million or 5.2%, compared to the prior year period, driven primarily by increased activity corresponding to our increased revenues during the current year.
Previous report
SG&A expense
Previous report
SG&A expense was $79.0 million during the nine months ended March 31, 2025, an increase of $7.5 million, or 10.5%, compared to the prior year period. The increase was driven by higher payroll and related costs of $4.3 million due to higher performance-based incentives and new hires to support growth, higher IT expenses of $0.9 million due to continued investments in core business management systems and additional software license fees, facilities expenses of $0.6 million and other costs including shipping and business permits of $0.5 million driven by growth in our higher margin offshore regions, share based compensation of $0.4 million primarily due to new grants issued and a higher share price impacting liability-based grants, offset by lower expense for our performance-based restricted stock units, increases in our allowance for credit losses and other reserves of $0.7 million, and increases in net foreign currency losses of $1.2 million year over year. These increases were partially offset by the impairment charges of $1.3 million recorded during the prior year period.
Previous report
D&A expense
Previous report
D&A expense was $13.0 million during the nine months ended March 31, 2025, a decrease of $1.9 million or 12.6%, compared to the prior year period. The decrease was primarily due to lower depreciation expense due to an increase in fully depreciated assets. As a percentage of revenue, D&A decreased to 3.2% during the nine months ended March 31, 2025 compared to 3.9% in the prior year period.
Previous report
Income from operations
Previous report
Income from operations was $34.3 million during the nine months ended March 31, 2025 compared to $26.6 million during the prior year period. The operating margin was 8.4% for nine months ended March 31, 2025, up from 6.9% for the prior year period. The increase was primarily driven by margin expansion as we continued to realize growth in our higher margin offshore regions and realize site optimization efforts undertaken in the prior year.
Previous report
Interest income
Previous report
Interest income during the nine months ended March 31, 2025 was $0.9 million, compared to $1.5 million during the prior year period, and consisted primarily of income from invested funds.
Previous report
Interest expense
Previous report
Interest expense during the nine months ended March 31, 2025 was $1.2 million, an increase of $0.8 million when compared to the prior year period, and consisted of interest on borrowings of $0.3 million, interest on finance leases of $0.2 million, amortization of deferred debt issuance costs of $0.1 million, interest of $0.2 million on the TRGI convertible promissory note (as defined and described below), and a loss on extinguishment of $0.2 million related to the termination of our PNC Credit Facility.
Previous report
Provision for Income Taxes
Previous report
Income tax expense was $6.8 million during the nine months ended March 31, 2025, an increase of $2.9 million when compared to the prior year period, primarily due to higher pre-tax income and a higher effective tax rate in the current year. The effective tax rate was 20.0% and 14.2% for the nine months ended March 31, 2025 and 2024, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded during the prior year period.
Previous report
Net income margin was 7.4% for the three months ended March 31, 2025 compared to 8.1% during the prior year quarter. This decrease was primarily driven by increases in interest expense, income tax expense, and share-based compensation, as well as lower interest income during the three months ended March 31, 2025 compared to the same quarter in the prior year. Net income margin was 6.6% for the nine months ended March 31, 2025 compared to 6.2% during the prior year period. This increase was primarily driven by margin expansion as we continued to realize growth in our higher margin offshore regions and site optimization efforts undertaken in the prior year, partially offset by increases in interest expense and income tax expense, as well as lower interest income during the nine months ended March 31, 2025 compared to the same period in the prior year.
Previous report
Adjusted EBITDA margin was 13.8% for the three months ended March 31, 2025 compared to 15.1% during the prior year quarter. This decrease was primarily driven by increases in selling, general and administrative expenses as related to our continued investments in organizational teams and technology during the three months ended March 31, 2025 compared to the same quarter in the prior year. Adjusted EBITDA margin was 12.5% for the nine months ended March 31, 2025 compared to 12.3% during the prior year period. These increases were driven by margin expansion and improved operational delivery due to the realization of site optimization efforts undertaken in the prior year.
Previous report
Net (debt) / cash
Previous report
HSBC Credit Facilities
Previous report
U.S. Credit Agreement
Previous report
On October 29, 2024 (the "Effective Date"), the Company's subsidiaries, Ibex Global Solutions, Inc. ("Ibex US") and Digital Globe Services, LLC, as borrowers, together with the Company and Ibex Global Limited, as guarantors, and the other loan parties and guarantor parties party thereto from time to time, entered into a credit agreement with HSBC Bank USA, National Association ("HSBC U.S.") (the “U.S. Credit Agreement”), which provides for a $25 million secured revolving credit facility (the “U.S. Credit Facility”). The U.S. Credit Facility matures on the earlier of October 29, 2027 and the termination or maturity of the obligations under the UAE Credit Agreement (as defined and described below).
Previous report
Borrowings under the U.S. Credit Facility bear interest at a per annum rate equal to term Secured Overnight Financing Rate ("SOFR") plus 2%, or equal to alternate base rate plus 1%. The U.S. Credit Facility is secured by substantially all of the assets of Ibex US and its wholly owned subsidiaries and guaranteed by the wholly owned U.S. subsidiaries of Ibex US, with an additional guaranty by the Company and Ibex Global Limited.
Previous report
UAE Credit Agreement
Previous report
On the Effective Date, the Company's subsidiary, Ibex Global FZ-LLC (the “UAE Company”) entered into: (i) a revolving loan agreement (committed) together with (ii) a facility offer letter; (iii) a general terms and conditions applicable to corporate banking credit facilities; and (iv) a letter of deviation (collectively, the “UAE Credit Agreement”), in each case, with HSBC Bank Middle East Limited ("HSBC UAE”). The UAE Credit Agreement provides for a committed $50 million post shipment seller revolving loan credit facility (the “UAE Loan Facility”) and a $50,000 credit card facility (the “Commercial Card Facility” and collectively with the UAE Loan Facility, the “UAE Facilities”). The final repayment date for the UAE Credit Agreement is two years from the Effective Date. To secure the UAE Facilities, the Company provided an irrevocable and unconditional guarantee in favor of HSBC UAE with respect to all monies and liabilities owing or incurred by the UAE Company to or in favor of HSBC UAE.
Previous report
Borrowings under the UAE Loan Facility bear interest at a per annum rate equal to 3-month term SOFR plus 2%. The Commercial Card Facility is subject to HSBC UAE’s standard commercial card terms and conditions.
Previous report
The U.S Credit Agreement and UAE Credit Agreement contain certain financial and non-financial covenants, including, among other things, covenants in respect of a total net leverage ratio, fixed charge coverage ratio, and restrictions on incurring additional debt and liens, making certain restricted payments and investments, engaging in certain transactions with affiliates, and disposal of assets.
Previous report
The U.S. Credit Facility and the UAE Credit Facilities (collectively, the "HSBC Credit Facilities") replaced the Company's prior credit facility with PNC Bank N.A., which was terminated and repaid in full on the Effective Date. In connection with the termination of the PNC Credit Facility, the Company recognized a loss on extinguishment of $0.2 million.
Previous report
TRGI convertible promissory note
Previous report
On November 19, 2024, the Company entered into a purchase agreement with TRGI (the “TRGI Purchase Agreement”), pursuant to which the Company purchased from TRGI 3,562,341 issued and outstanding common shares of the Company for an aggregate price of $70 million, of which $45 million was paid in cash and $25 million was in the form of a convertible promissory note issued to TRGI (the "TRGI convertible promissory note"). The TRGI convertible promissory note was repaid on January 9, 2025, using our available cash and funds drawn from the HSBC Credit Facilities.
Previous report
Total debt
Previous report
Net cash inflow from operating activities during the nine months ended March 31, 2025 decreased to $17.7 million compared to $18.5 million during the same period in the prior year, which was driven by increases in our accounts receivable in line with our revenue growth offset by net changes in other operating assets and liabilities.
Previous report
During the nine months ended March 31, 2024, we expended $18.6 million on financing activities, primarily related to re-purchasing our common shares under share repurchase programs.
Reworded paragraphs (43)
Previous wording
This Form 10-Q includes certain historical consolidated financial and other data for IBEX Limited (“ibex,” “we,” “us,” “our” or the “Company”). The following discussion provides a narrative of our financial condition and results of operations for the three and nine months ended March 31, 2025 compared to the three and nine months ended March 31, 2024.
Current wording
This Form 10-Q includes certain historical consolidated financial and other data for IBEX Limited ("ibex," "we," "us," "our" or the "Company"). The following discussion provides a narrative of our financial condition and results of operations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Previous wording
ibex delivers innovative business process outsourcing (“BPO”), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage, and retain valuable customers. Today, ibex operates a global customer experiences ("CX") delivery center model consisting of 30 delivery centers around the world, while deploying next-generation technology to drive superior customer experiences for many of the world’s leading companies across various verticals, including Retail & E-commerce, HealthTech, FinTech, Utilities, and Travel, Transportation & Logistics. ibex leverages its diverse global team of approximately 33,000 employees together with industry-leading technology, including its Wave iX platform, to manage customer interactions on behalf of our clients, driving a truly differentiated customer experience.
Current wording
ibex delivers innovative business process outsourcing ("BPO"), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage, and retain valuable customers. ibex operates a global customer experiences ("CX") delivery center model consisting of 30 delivery centers around the world, while deploying next-generation technology to drive superior customer experiences for many of the world’s leading companies across various verticals, including Retail & E-commerce, HealthTech, FinTech, Utilities, and Travel, Transportation & Logistics. ibex leverages its diverse global team of approximately 36,000 employees together with industry-leading technology, including its Wave iX platform, to manage customer interactions on behalf of our clients, driving a truly differentiated customer experience.
Previous wording
During the three and nine months ended March 31, 2025, the Company delivered strong financial results, and experienced growth with leading clients in our HealthTech, Travel, Transportation & Logistics, Retail & E-commerce, and Other verticals, partially offset by decreases in our FinTech vertical. We increased capacity in our offshore and nearshore regions and expanded into two new sites. The business performed well in several important areas this quarter and year-to-date, including total revenues and profitability.
Current wording
During the three months ended September 30, 2025, the Company delivered strong financial results, and experienced growth with leading clients in our Retail & E-commerce, HealthTech, Travel, Transportation & Logistics, and Other verticals, partially offset by decreases in our Telecommunications vertical. The business performed well in several important areas this quarter, including total revenues, profitability, cash from operating activities, free cash flows, new client wins in strategic verticals, and client and vertical diversification.
Previous wording
The Company delivered revenues of $411.1 million during the nine months ended March 31, 2025, a 7.1% increase compared to the same period in the prior year due to growth from existing and new clients launched throughout fiscal 2024 and fiscal 2025 to-date. Net income during the nine months ended March 31, 2025 was $27.3 million, a 14.5% increase from $23.8 million during the same period in the prior year. Fully diluted earnings per share for the nine months ended March 31, 2025 of $1.70 increased from $1.29 in the prior year period. These increases were driven by revenue growth in our higher margin offshore regions, improved gross margin performance, and fewer diluted shares outstanding compared to the prior year period.
Current wording
The Company delivered revenues of $151.2 million during the three months ended September 30, 2025, a 16.5% increase compared to the prior year quarter due to growth from existing and new clients launched throughout fiscal 2025 and the first quarter of fiscal 2026. Net income during the three months ended September 30, 2025 was $12.0 million, a 59.9% increase from $7.5 million during the same quarter in the prior year. Fully diluted earnings per share for the three months ended September 30, 2025 of $0.82, increased from $0.43 during the prior year quarter. These increases were driven by revenue growth in our higher margin offshore regions and improved operating margin performance. The increase in fully diluted earnings per share was driven by higher net income during the current year and fewer diluted shares outstanding compared to the prior year period.
Previous wording
Macroeconomic factors, including but not limited to, increasing inflation and interest rates, global economic and geopolitical uncertainty, changes in foreign currency exchange rates, and the impact that these factors are having on our clients and their customers, have also impacted our financial results during the nine months ended March 31, 2025. Some of our customers have increased their focus on cost reduction, resulting in decisions to shift work from onshore sites to offshore sites, which may impact our revenues and operations in the near term. However, we also believe that they present opportunities with both new and existing clients, as companies maintain a focus on cost reduction and look for new solutions and delivery options.
Current wording
Macroeconomic factors, including but not limited to, inflation and interest rates, global economic and geopolitical uncertainty, changes in foreign currency exchange rates, and the impact of these factors on our clients and their customers, could impact our financial results. Some of our customers have increased their focus on cost reduction, resulting in decisions to shift work from onshore sites to offshore sites, which may impact our revenues and operations in the near term. However, we also believe that they present opportunities with both new and existing clients, as companies maintain a focus on cost reduction and look for new solutions and delivery options.
Previous wording
Demand for customer interaction services reflects a client’s underlying business performance and priorities. Growth in a client’s business often results in increased demand for our customer engagement solutions. Conversely, a decline in a client’s business generally results in a decrease in demand for our customer engagement solutions, shifting volume to lower cost geographies, and potential increases in demand for our customer acquisition and expansion solutions. The correlation between a client's business performance and demand for outsourced customer interaction solutions can therefore be complex, and depends upon several factors, such as industry consolidation, client investments in growth, and overall macroeconomic environment, all of which can result in short term revenue volatility for outsourcing providers. Demand during the nine months ended March 31, 2025 was higher when compared to the prior year quarter due to increased demand for our digital-first solutions, growth in our existing clients, and recent new client wins in strategic verticals.
Current wording
Demand for customer interaction services reflects a client’s underlying business performance and priorities. Growth in a client’s business often results in increased demand for our customer engagement solutions. Conversely, a decline in a client’s business generally results in a decrease in demand for our customer engagement solutions, shifting volume to lower cost geographies, and potential increases in demand for our customer acquisition and expansion solutions. The correlation between a client's business performance and demand for outsourced customer interaction solutions can therefore be complex, and depends upon several factors, such as industry consolidation, client investments in growth, and overall macroeconomic environment, all of which can result in short term revenue volatility for outsourcing providers. Demand during the three months ended September 30, 2025 was higher when compared to the prior year quarter due to increased demand for our digital-first solutions, growth in our existing clients, and recent new client wins in strategic verticals.
Previous wording
As demand for delivery locations has continued to shift towards lower cost geographies during the nine months ended March 31, 2025, we have continued to fill the additional capacity in our offshore region and expect this capacity to be absorbed quickly as clients and prospective clients look to relocate work to cost advantageous markets in the near term. In addition, we continue to realize cost savings as we geographically optimize our delivery centers in higher cost regions.
Current wording
As demand for delivery locations has continued to shift towards lower cost geographies during the three months ended September 30, 2025, we are in the process of building additional capacity in our offshore regions. In addition, we continue to realize cost savings as we geographically optimize our delivery centers in higher cost regions.
Previous wording
When compensation levels of our employees increase, we may not be able to pass on such increased costs to our clients or do so on a timely basis, which tends to depress our operating profit margins if we cannot generate sufficient offsetting productivity gains. During the nine months ended March 31, 2025, we continued to see increasing wage pressure in all of our geographies, in part brought on by the current global inflation and labor shortage, which is increasing competition for contact center agents from other sectors of the economy. During the nine months ended March 31, 2025, we have offset some of these wage increases with higher agent quality and increased productivity, higher agent retention, and increased client prices under contractual cost of living adjustments (“COLA”). Furthermore, our overall labor cost as a percentage of revenue is impacted by the aforementioned shift in delivery location from onshore delivery centers to offshore centers.
Current wording
When compensation levels of our employees increase, we may not be able to pass on such increased costs to our clients or do so on a timely basis, which tends to depress our operating profit margins if we cannot generate sufficient offsetting productivity gains. We continued to see increasing wage pressure in all of our geographies, in part brought on by the current global inflation and labor shortage, which is increasing competition for contact center agents from other sectors of the economy during the three months ended September 30, 2025. We were able to offset some of these wage increases with higher agent quality and increased productivity, higher agent retention, and increased client prices under contractual cost of living adjustments ("COLA"). Furthermore, our overall labor cost as a percentage of revenue is impacted by the aforementioned shift in delivery location from onshore delivery centers to offshore centers.
Previous wording
We generate greater profit margins from our work carried out by agents located in offshore and nearshore regions compared to our work carried out from onshore locations in the United States. As a result, our operating margins are influenced by the proportion of our work delivered from these higher margin locations. Over time we have expanded and further diversified our delivery network by adding facilities in these locations, offering a significant relative cost advantage. Our percentage of workstations in nearshore and offshore centers is approximately 97% as of March 31, 2025. We regularly evaluate whether to procure additional space or enter into new markets as we continue to add employees and expand geographically to meet the demands of our business.
Current wording
We generate greater profit margins from our work carried out by agents located in offshore and nearshore regions compared to our work carried out from onshore locations in the United States. As a result, our operating margins are influenced by the proportion of our work delivered from these higher margin locations. Over time we have expanded and further diversified our delivery network by adding facilities in these locations, offering a significant relative cost advantage. Our percentage of workstations in nearshore and offshore geographies is approximately 97% as of September 30, 2025 versus 95% as of September 30, 2024. We regularly evaluate whether to procure additional space or enter into new markets as we continue to add employees and expand geographically to meet the demands of our business.
Previous wording
We have a strong track record of winning key new client accounts and as a result of our land and expand strategy, we have been successful in winning an increasing number of new client engagements, and subsequently increasing our revenues with these clients period over period. Historically, our in-year new client wins have generated 2.5x to 3.0x revenue in the second and third years of the engagement. The slowing economic environment impacted the length of our sales cycles during recent years, however, we have experienced a recovery in the pace of sales activity beginning the second half of fiscal year 2024.
Current wording
We have a strong track record of winning key new client accounts and as a result of our land and expand strategy, we have been successful in subsequently increasing our revenues with these clients period over period. Historically, our in-year new client wins have generated approximately 2.0x to 3.0x revenue in the second and third years of the engagement.
Previous wording
During the nine months ended March 31, 2025, our largest client accounted for 11%, while our three largest clients accounted for 27% of our consolidated revenues. We believe our client diversification is a strength in a challenging market.
Current wording
During the three months ended September 30, 2025, our largest client accounted for 10%, while our three largest clients accounted for 26% of our consolidated revenues. We believe our client diversification is a strength in a challenging market.
Previous wording
Our revenues are dependent upon both volumes and unit pricing for our services. Client pricing is often expressed in terms of a base price per minute or hour as well as, in limited cases, with bonuses and occasionally penalties depending upon our achievement of certain client objectives. During the fiscal year ended June 30, 2024 and the nine months ended March 31, 2025, the tightening in the global labor market and corresponding wage inflation, as well as increasing facilities expenses have resulted in us pursuing and successfully negotiating price increases or COLA with many of our clients.
Current wording
Our revenues are dependent upon both volumes and unit pricing for our services. Client pricing is often expressed in terms of a base price per minute or hour as well as, in limited cases, with bonuses and occasionally penalties depending upon our achievement of certain client objectives. During the fiscal year ended June 30, 2025 and the three months ended September 30, 2025, the tightening in the global labor market and corresponding wage inflation, as well as increasing facilities expenses have resulted in us pursuing and successfully negotiating price increases or COLA with many of our clients.
Previous wording
The following summarizes the results of our operations for the three and nine months ended March 31, 2025 and 2024:
Current wording
The following summarizes the results of our operations for the three months ended September 30, 2025 and 2024:
Previous wording
Our revenue was $140.7 million for the three months ended March 31, 2025, an increase of $13.9 million, or 11.0%, compared to the prior year quarter. This increase was primarily driven by increases in our HealthTech vertical of $3.7 million, or 20.0%, Travel, Transportation & Logistics vertical of $3.1 million, or 18.7%, Retail & E-commerce vertical of $4.6 million, or 14.6%, and Other vertical of $4.2 million, or 30.4%, due to growth in our digital acquisition business, compared to the prior year quarter. These increases were partially offset by decreases in the FinTech vertical of $2.1 million, or 12.2%.
Current wording
Our revenue was $151.2 million for the three months ended September 30, 2025, an increase of $21.5 million, or 16.5%, compared to the prior year quarter. This increase was primarily driven by increases in our Retail & E-commerce vertical of $7.9 million, or 25.0%, HealthTech vertical of $3.6 million, or 19.5%, Travel, Transportation & Logistics vertical of $2.8 million, or 15.4%, and Other vertical of $11.6 million, or 28.1%, due to growth in our digital acquisition business, compared to the prior year quarter. These increases were partially offset by decreases in the Telecommunications vertical of $4.5 million, or 22.5%.
Previous wording
As a percentage of total revenue, the revenue from our HealthTech vertical increased to 15.8% compared to 14.6% in the prior year quarter, the revenue from our Travel, Transportation & Logistics vertical increased to 14.0% compared to 13.1% in the prior year quarter, the revenue from our Retail & E-commerce vertical increased to 25.7% compared to 24.9% in the prior year quarter, and the revenue from our Other vertical increased to 13.0% compared to 11.0% in the prior year quarter. Conversely, the revenue from our FinTech vertical decreased to 10.8% compared to 13.7% in the prior year quarter.
Current wording
As a percentage of total revenue, the revenue from our Retail & E-commerce vertical increased to 26.3% compared to 24.5% in the prior year quarter, the revenue from our HealthTech vertical increased to 14.5% compared to 14.1%, the revenue from our Travel, Transportation & Logistics vertical of 14.1% remained consistent with 14.2%, and the revenue from our Other vertical increased to 35.0% compared to 31.8% in the prior year quarter. Conversely, the revenue from our Telecommunications vertical decreased to 10.2% compared to 15.4% in the prior year quarter.
Previous wording
Cost of services was $96.0 million during the three months ended March 31, 2025, an increase of $8.9 million, or 10.3%, compared to the prior year quarter. The increase in cost of services was primarily due to increases in payroll and related costs, reseller commissions and lead expenses, IT expenses, and telecom, local transportation and other site related expenses.
Current wording
Cost of services was $106.6 million during the three months ended September 30, 2025, an increase of $16.5 million, or 18.4%, compared to the prior year quarter. The increase in cost of services was primarily due to increases in payroll and related costs, reseller commissions and lead expenses, IT expenses, facility expenses, telecom, local transportation, and other site related expenses, and stock-based compensation.
Previous wording
Payroll and related costs were $72.4 million during the three months ended March 31, 2025, an increase of $4.8 million, or 7.1%, compared to the prior year quarter, due to increased revenues during the current year quarter. As a percent of revenue, payroll cost decreased to 51.4% during the three months ended March 31, 2025 compared to 53.3% during the prior year quarter, reflecting the continuing trend towards lower cost, higher margin regions.
Current wording
Payroll and related costs were $77.9 million during the three months ended September 30, 2025, an increase of $9.9 million, or 14.6%, compared to the prior year quarter, due to increased revenues during the current year quarter. As a percent of revenue, payroll cost decreased to 51.5% during the three months ended September 30, 2025 compared to 52.4% during the prior year quarter, reflecting the continuing trend towards lower cost, higher margin regions.
Previous wording
Reseller commissions and lead expenses were $5.5 million during the three months ended March 31, 2025, an increase of $2.8 million, or 106.1%, compared to the prior year quarter. These increases were primarily due to increases in the utilization of our third-party affiliates for inbound inquiries as well as search engine costs in connection with increased revenues in our higher margin digital sales and marketing efforts.
Current wording
Reseller commissions and lead expenses were $8.3 million during the three months ended September 30, 2025, an increase of $4.5 million, or 119.7%, compared to the prior year quarter. These increases were primarily due to increases in the utilization of our third-party affiliates for inbound inquiries as well as search engine costs in connection with increased revenues in our higher margin digital sales and marketing efforts.
Previous wording
IT expenses were $1.8 million during the three months ended March 31, 2025, an increase of $0.6 million, or 48.2%, compared to the prior year quarter, primarily due to additional software license fees.
Current wording
IT expenses were $2.0 million during the three months ended September 30, 2025, an increase of $0.6 million, or 46.1%, compared to the prior year quarter, primarily due to additional software license fees.
Previous wording
Telecom, local transportation, other site related expenses were $4.2 million, an increase of $0.7 million, or 19.5%, compared to the prior year period. These increases were primarily due to increased activity corresponding to our increased revenues during the current year quarter.
Current wording
Telecom, local transportation, and other site related expenses were $4.3 million, an increase of $0.7 million, or 18.2%, compared to the prior year period. These increases were primarily due to increased activity corresponding to our increased revenues during the current year quarter.
Previous wording
Share based compensation was $0.4 million during the nine months ended March 31, 2025, an increase of $0.4 million compared to the prior year period, primarily due to a higher share price impacting liability-based grants,.
Current wording
Stock-based compensation expense was $0.4 million during the three months ended September 30, 2025, an increase of $0.2 million, or 168.1%, compared to the prior year quarter, primarily driven by a higher share price impacting our liability-based grants.
Previous wording
SG&A expense was $27.1 million during the three months ended March 31, 2025, an increase of $3.5 million, or 14.8%, compared to the prior year quarter. The increase was driven by higher payroll and related costs of $1.7 million due to higher performance-based incentives, share based compensation of $1.0 million primarily due to new grants issued and a higher share price impacting liability-based grants, professional and other fees of $0.7 million related to legal and accounting consulting fees, higher IT expenses of $0.5 million due to continued investments in core business management systems and additional software license fees, and increases in net foreign currency losses of $0.6 million period over period. These increases were partially offset by the impairment charges of $1.3 million recorded during the prior year quarter.
Current wording
SG&A expense was $26.5 million during the three months ended September 30, 2025, an increase of $0.3 million, or 1.2%, compared to the prior year quarter. The change was driven by increased payroll and related costs of $1.3 million due to higher performance-based incentives and new hires to support growth, increased stock-based compensation of $1.7 million primarily due to new grants issued and a higher share price impacting our liability-based grants, increases in IT expenses of $0.6 million due to continued investments in core business management systems, as well as favorable foreign currency impacts of $2.8 million, partially offset by decreases in legal and professional fees, insurance expenses, and telecom expenses of $0.5 million compared to the prior year quarter.
Previous wording
D&A expense was $4.3 million during the three months ended March 31, 2025, a decrease of $0.5 million or 11.0% compared to the prior year quarter. The decrease was primarily attributable to lower depreciation expense due to an increase in fully depreciated assets. As a percentage of revenue, D&A decreased to 3.1% during the three months ended March 31, 2025 compared to 3.8% during the prior year quarter.
Current wording
D&A expense was $4.4 million during the three months ended September 30, 2025, consistent with the prior year quarter. As a percentage of revenue, D&A decreased to 2.9% during the three months ended September 30, 2025 compared to 3.4% during the prior year quarter.
Previous wording
Income from operations was $13.3 million during the three months ended March 31, 2025 compared to $11.3 million during the prior year quarter. The operating margin was 9.5% for three months ended March 31, 2025, up from 8.9% for the prior year quarter. The increase was primarily driven by margin expansion as we continued to realize growth in our higher margin offshore regions and realize site optimization efforts undertaken in the prior year.
Current wording
Income from operations was $13.7 million during the three months ended September 30, 2025 compared to $9.1 million during the prior year quarter. The operating margin was 9.1% for three months ended September 30, 2025, up from 7.0% for the prior year quarter. The increase was primarily driven by margin expansion as we continued to realize growth in our higher margin offshore regions and favorable foreign currency impacts compared to the prior year quarter.
Previous wording
Interest income during the three months ended March 31, 2025 was $0.03 million, compared to $0.4 million during the prior year quarter and consisted primarily of income from invested funds.
Current wording
Interest income during the three months ended September 30, 2025 was $0.03 million, compared to $0.6 million during the prior year quarter and consisted primarily of income from invested funds.
Previous wording
Income tax expense was $2.5 million during three months ended March 31, 2025, an increase of $1.2 million when compared with the prior year quarter, primarily due to higher pre-tax income and a higher effective tax rate in the current year quarter. The effective tax rate was 19.2% and 11.0% for the three months ended March 31, 2025 and 2024, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded during the prior year quarter.
Current wording
Income tax expense was $1.5 million during the three months ended September 30, 2025, a decrease of $0.5 million when compared with the prior year quarter, primarily due to a lower effective tax rate in the current year quarter. The effective tax rate was 10.9% and 20.8% for the three months ended September 30, 2025 and 2024, respectively. The change in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete tax benefits from stock-based compensation compared to the prior year quarter.
Previous wording
Adjusted net income is a non-GAAP profitability measure that represents net income before the effect of the following items: severance costs, impairment losses, warrant contra revenue, foreign currency gains and losses, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.
Current wording
Adjusted net income is a non-GAAP profitability measure that represents net income before the effect of the following items: severance costs, foreign currency gains and losses, and stock-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.
Previous wording
EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and D&A. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: severance costs, impairment losses, interest income, warrant contra revenue, foreign currency gains and losses, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.
Current wording
EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and D&A. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: severance costs, interest income, foreign currency gains and losses, and stock-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.
Previous wording
Net cash provided by operating activities during the three and nine months ended March 31, 2025 was $8.8 million and $17.7 million, respectively, compared to $11.4 million and $18.5 million, respectively, during the prior year periods. Free cash flow during the three and nine months ended March 31, 2025 was $3.6 million and $4.5 million, respectively, compared to $9.7 million and $11.8 million, respectively, during the prior year periods. The increase in capital expenditures during the current year was driven by expansions in our offshore and nearshore regions and purchases of IT and telecommunications equipment.
Current wording
Net cash provided by operating activities during the three months ended September 30, 2025 and 2024 was $15.7 million and $7.8 million, respectively. Free cash flow during the three months ended September 30, 2025 and 2024 was $8.0 million and $4.1 million, respectively. The increase in capital expenditures during the current year was driven by expansions in our offshore regions to meet demand and purchases of IT and telecommunications equipment.
Previous wording
Net (debt) / cash is a non-GAAP liquidity measure that represents cash and cash equivalents less total debt. We believe that net (debt) / cash provides useful information to investors in understanding and evaluating our ability to pay off debt. Our use of net (debt) / cash has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Further, other companies, including companies in our industry, may adjust their cash or debt differently, which may reduce the value of net (debt) / cash as a comparative measure.
Current wording
Net cash is a non-GAAP liquidity measure that represents cash and cash equivalents less total debt. We believe that net cash provides useful information to investors in understanding and evaluating our ability to pay off debt. Our use of net cash has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Further, other companies, including companies in our industry, may adjust their cash or debt differently, which may reduce the value of net cash as a comparative measure.
Previous wording
Net (debt) / cash is calculated below:
Current wording
Net cash is calculated below:
Previous wording
We qualify as an emerging growth company ("EGC") pursuant to the provisions of the JOBS Act. The JOBS Act permits an EGC like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use the extended transition period until we are no longer an EGC or until we choose to opt out of the extended transition period affirmatively and irrevocably. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.
Current wording
We qualify as an emerging growth company ("EGC") pursuant to the provisions of the JOBS Act. The JOBS Act permits an EGC like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use the extended transition period until we are no longer an EGC (which we expect will occur on June 30, 2026) or until we choose to opt out of the extended transition period affirmatively and irrevocably. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.
Previous wording
As of March 31, 2025, our principal sources of liquidity were cash and cash equivalents totaling $13.0 million, cash flows from operations, and the unused availability under our new HSBC Credit Facilities (as defined below) of $46.1 million.
Current wording
As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $22.7 million, cash flows from operations, and the unused availability under our existing credit facilities with HSBC Bank USA, National Association and HSBC Bank Middle East Limited (collectively, the "HSBC Credit Facilities") of $67.4 million.
Previous wording
As of March 31, 2025, our total indebtedness was $20.6 million, consisting of $19.1 million on our HSBC Credit Facilities and $1.5 million of finance leases. We were in compliance with all debt covenants as of March 31, 2025. See Note 5, "Debt" in the consolidated financial statements included in this Form 10-Q for additional information regarding our debt.
Current wording
As of September 30, 2025, our total indebtedness was $1.6 million, consisting of our finance leases. We were in compliance with all debt covenants as of September 30, 2025. Refer to Note 5, "Debt" in the consolidated financial statements included in this Form 10-Q for additional information on our debt.
Previous wording
To the extent additional funds are necessary to meet our long-term liquidity needs as we execute on our business strategy, we anticipate that they will be obtained through the utilization of current availability under our revolving credit facilities, additional indebtedness, additional equity financings or a combination of these potential sources of funds; however, such additional financing may not be available on favorable terms, or at all. If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adversely affected.
Current wording
To the extent additional funds are necessary to meet our long-term liquidity needs as we execute on our business strategy, we anticipate that they will be obtained through the utilization of current availability under our HSBC Credit Facilities, additional indebtedness, additional equity financings or a combination of these potential sources of funds; however, such additional financing may not be available on favorable terms, or at all. If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adversely affected.
Previous wording
In connection with the HSBC Credit Facilities, the Company deferred debt issuance costs of $0.9 million, which are included in other current assets and other non-current assets in the consolidated balance sheets as of March 31, 2025.
Current wording
In connection with the HSBC Credit Facilities, the Company had deferred debt issuance costs of $0.8 million, which are included in other current assets and other non-current assets in the consolidated balance sheets as of September 30, 2025.
Previous wording
The Board may authorize share repurchases of the Company’s common shares and the Company had multiple share repurchase plans during the nine months ended March 31, 2025 and 2024. During the nine months ended March 31, 2025 and 2024, the Company repurchased 327,230 and 1,124,876 shares, respectively, of its common shares totaling $5.6 million, and $18.6 million respectively. All repurchases under these programs were funded with our existing cash balance.
Current wording
The Board may authorize share repurchases of the Company’s common shares and the Company had multiple share repurchase plans during the three months ended September 30, 2025 and 2024. The Company’s current share repurchase program allows us to repurchase up to $15 million in shares through May 12, 2026. During the three months ended September 30, 2025 and 2024, the Company repurchased 91,658 and 282,129 shares, respectively, of its common shares totaling $2.7 million, and $4.7 million respectively. All repurchases under these programs were funded with our existing cash balance.
Previous wording
The following discussion highlights our cash flow activities during the nine months ended March 31, 2025:
Current wording
The following discussion highlights our cash flow activities during the three months ended September 30, 2025 and 2024:
Previous wording
As of March 31, 2025, we had cash and cash equivalents of $13.0 million, including $8.7 million located outside of the United States, and $2.5 million that is subject to certain local regulations on repatriation. As of June 30, 2024, we had cash and cash equivalents of $62.7 million, including $5.1 million located outside of the United States, and $2.5 million that is subject to certain local regulations on repatriation.
Current wording
As of September 30, 2025, we had cash and cash equivalents of $22.7 million, including $16.1 million located outside of the United States, and $2.6 million that is subject to certain local regulations on repatriation. As of June 30, 2025, we had cash and cash equivalents of $15.4 million, including $12.0 million located outside of the United States, and $2.7 million that is subject to certain local regulations on repatriation.
Previous wording
During the nine months ended March 31, 2025, we incurred expenditures of $13.2 million on investing activities primarily driven by expansions in our offshore and nearshore regions and purchases of IT and telecommunications equipment.
Current wording
During the three months ended September 30, 2025, we incurred expenditures of $7.6 million on investing activities primarily driven by expansions in our offshore regions and purchases of IT and telecommunications equipment.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the three months ended September 30, 2024, we expended $4.6 million on financing activities, of which $4.8 million related to the repurchase of our common shares and $0.2 million related to principal payments on our finance leases, partially offset by net cash receipts of $0.4 million from stock transactions.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
As a percentage of total revenue, the revenue from our HealthTech vertical increased to 15.0% for the nine months ended March 31, 2025 compared to 12.9% in the same period in the prior year, the revenue from our Travel, Transportation & Logistics vertical increased to 14.0% compared to 13.0% in the prior year period, the revenue from our Retail & E-commerce vertical increased to 26.3% compared to 25.8% in the prior year period, and the revenue from our Other vertical increased to 11.6% compared to 10.7% in the prior year period. Conversely, the revenue from our FinTech vertical decreased to 11.4% for the nine months ended March 31, 2025 compared to 14.0% in the prior year period.
Previous report — wording carried elsewhere
Cost of services was $284.8 million during the nine months ended March 31, 2025, an increase of $13.7 million, or 5.0%, compared to the prior year period. The increase in cost of services was primarily due to increases in payroll and related costs, reseller commissions and lead expenses, IT expenses, share based compensation, and telecom, local transportation and other site related expenses.
Previous report — wording carried elsewhere
Reseller commissions and lead expenses were $13.0 million during the nine months ended March 31, 2025, an increase of $3.8 million, or 41.4%, compared to the prior year period. These increases were primarily due to increases in the utilization of our third-party affiliates for inbound inquiries as well as search engine costs in connection with increased revenue in our higher margin digital sales and marketing efforts.