19 unchanged sentences
We conducted our audits in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
+Added: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
36 unchanged sentences
Current operating lease liabilities 14,332 12,051
−Removed: Current maturities of long-term debt 660 413
+Added: Current debt 823 660
Due to related parties 22 60
17 unchanged sentences
Accumulated other comprehensive loss ( 6,336 ) ( 7,913 )
−Removed: Accumulated deficit ( 11,123 ) ( 44,778 )
+Added: Retained earnings / (deficit) 25,741 ( 11,123 )
Total stockholders' equity 134,309 165,799
15 unchanged sentences
Income before income taxes 45,932 40,986 40,326
−Removed: Provision for income tax (expense) / benefit ( 7,331 ) ( 8,744 ) 2,077
+Added: Provision for income tax expense ( 9,068 ) ( 7,331 ) ( 8,744 )
Net income $ 36,864 $ 33,655 $ 31,582
−Removed: Other comprehensive income / (loss)
+Added: Other comprehensive income
Foreign currency translation adjustments $ 1,114 $ ( 1,623 ) $ ( 2,234 )
−Removed: Unrealized (loss) / gain on cash flow hedging instruments, net of tax ( 111 ) 515 ( 323 )
−Removed: Actuarial gain / (loss) on defined benefit plan 133 ( 31 ) 440
−Removed: Total other comprehensive loss ( 1,601 ) ( 1,750 ) ( 2,164 )
+Added: Unrealized gain / (loss) on cash flow hedging instruments, net of tax 775 ( 111 ) 515
+Added: Actuarial (loss) / gain on defined benefit plan ( 312 ) 133 ( 31 )
+Added: Total other comprehensive income / (loss) 1,577 ( 1,601 ) ( 1,750 )
Total comprehensive income $ 38,441 $ 32,054 $ 29,832
13 unchanged sentences
Comprehensive
−Removed: Income / (Loss) Accumulated
−Removed: Deficit Total
+Added: Income / (Loss) Retained Earnings / (Deficit) Total
Stockholders'
6 unchanged sentences
Changes in defined benefit plan — — — — ( 31 ) — ( 31 )
−Removed: Issue of restricted common shares 73 — — — — — —
+Added: Forfeiture of restricted common shares ( 72 ) — — — — — —
Provision for common stock warrants — — — 1,090 — — 1,090
7 unchanged sentences
Changes in defined benefit plan — — — — 133 — 133
−Removed: Forfeiture of restricted common shares ( 72 ) — — — — — —
Provision for common stock warrants — — — 1,183 — — 1,183
7 unchanged sentences
Changes in defined benefit plan — — — — ( 312 ) — ( 312 )
−Removed: Provision for common stock warrants — — — 1,183 — — 1,183
Issue of common shares related to option issuances 289 — — 4,307 — — 4,307
5 unchanged sentences
(in thousands)
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year Ended June 30,
+Added: 2025 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
4 unchanged sentences
Warrant contra revenue — 1,183 1,090
−Removed: Deferred income tax provision / (benefit) 344 4,529 ( 5,170 )
−Removed: Share-based compensation expense 3,765 4,606 1,851
+Added: Deferred income tax ( 2,877 ) 344 4,529
+Added: Stock-based compensation expense 5,432 3,765 4,606
Allowance of expected credit losses 514 33 295
4 unchanged sentences
Increase in accounts receivable ( 19,262 ) ( 12,068 ) ( 12,297 )
−Removed: (Increase) / decrease in prepaid expenses and other current assets ( 7,517 ) 1,467 3,551
−Removed: (Decrease) / increase in accounts payable and accrued liabilities ( 2,246 ) ( 3,753 ) 2,307
−Removed: (Decrease) / increase in deferred revenue ( 1,919 ) ( 4,797 ) 5,506
+Added: Decrease / (increase) in prepaid expenses and other current assets 361 ( 7,517 ) 1,467
+Added: Increase / (decrease) in accounts payable and accrued liabilities 6,248 ( 2,246 ) ( 3,753 )
+Added: Increase / (decrease) in deferred revenue 752 ( 1,919 ) ( 4,797 )
Decrease in operating lease liabilities ( 14,403 ) ( 13,528 ) ( 14,309 )
13 unchanged sentences
Effects of exchange rate difference on cash and cash equivalents ( 3 ) ( 21 ) ( 610 )
−Removed: Net increase / (decrease) in cash and cash equivalents 5,291 8,598 ( 9,011 )
+Added: Net (decrease) / increase in cash and cash equivalents ( 47,370 ) 5,291 8,598
Cash and cash equivalents at beginning of the year 62,720 57,429 48,831
12 unchanged sentences
Our registered office in Bermuda is Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda.
−Removed: We are a “controlled company” within the meaning of the rules of Nasdaq, with The Resource Group International Limited (“TRGI”) being our controlling shareholder.
−Removed: TRG Pakistan Limited holds a controlling interest in TRGI.
On August 7, 2020, the Company was admitted to trade on the Nasdaq Global Market under the ticker symbol “IBEX.”
2 unchanged sentences
The Company leverages sophisticated technology and proprietary analytics, in combination with its global footprint and business process outsourcing expertise, to protect and enhance clients’ brands.
−Removed: The Company manages nearly 169 million interactions each year with consumers on behalf of clients through an omni-channel approach, using voice, web, chat and email.
+Added: The Company manages interactions with consumers on behalf of clients through an omni-channel approach, using voice, web, chat and email.
Our Connect business lies at the core of our offerings and generates the majority of the Company’s revenue.
This business unit delivers differentiated customer service (assisting our clients’ customers with information about our clients and their products or services), technical support (providing specialized teams to provide information, assistance and technical guidance to our clients’ customers on a specific product or service), revenue generation (upselling and cross selling) and other value-added outsourced back office services (finance and accounting, marketing support, sales operations, and human resources administration) to our clients.
−Removed: We deploy these capabilities through a true omni-channel CX model, which integrates voice, email, chat, SMS, social media and other communication applications.
+Added: We deploy these capabilities through a true omni-channel customer experience (“CX”) model, which integrates voice, email, chat, SMS, social media and other communication applications.
In addition, our ibex Digital suite of solutions works with consumer-facing businesses to help them build, grow and scale technology-driven customer acquisition solutions, while helping drive digital transformation.
1 unchanged sentence
We also have a small suite of what we call CX services which measures, monitors and manages our clients’ holistic customer experiences.
−Removed: Operating segments
−Removed: An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment.
−Removed: The Company’s CODM is the chief executive officer (“CEO”).
−Removed: The Company’s CODM reviews consolidated financial results to make decisions, allocate resources and assess performance.
−Removed: Therefore, the Company has determined that it operates in a single operating and reportable segment.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and principles of consolidation
−Removed: On December 31, 2022, we determined that we no longer met the criteria to remain a foreign private issuer.
−Removed: Effective July 1, 2023, the Company became a domestic filer and we are required to file periodic reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, and to follow other rules as required.
The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.
−Removed: GAAP”) for the fiscal years ended June 30, 2024
−Removed: and 2023, and retrospectively for the fiscal year ended June 30, 2022 and include the financial results of all wholly-owned subsidiaries.
+Added: GAAP”) for the fiscal years ended June 30, 2025, 2024, and 2023 and include the financial results of all wholly-owned subsidiaries.
When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of a ccounting.
All intercompany balances and transactions have been eliminated in consolidation.
−Removed: Certain prior year amounts have been reclassified to conform to the current year presentation.
+Added: The Company consolidates variable interest entities ("VIE"), when it is deemed to be the primary beneficiary.
+Added: The Company is considered the primary beneficiary if it has both (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb significant losses of the VIE or the right to receive significant benefits from the VIE.
Use of estimates
3 unchanged sentences
impairment of long-lived assets, operating lease assets and liabilities, goodwill, and other intangible assets;
−Removed: allowance for credit losses;
+Added: allowance for credit
valuation allowances for deferred tax assets and other receivables;
−Removed: fair value of share-based compensation, warrants, and derivatives, and legal provisions.
+Added: fair value of stock-based compensation, warrants, and derivatives, and legal provisions.
The Company bases its estimates on historical experience and other assumptions it believes are reasonable, including the use of outside experts as necessary, and updates these estimates on an ongoing basis and as new events occur, more experience is acquired and/or more information is obtained.
23 unchanged sentences
We utilize third parties in the satisfaction of this performance obligation;
−Removed: however, because we retain control over these third parties and are solely responsible for the risk and reward associated
−Removed: with this performance obligation, we have determined that we are the principal in these transactions and therefore recognize revenue on a gross basis.
+Added: however, because we retain control over these third parties and are solely responsible for the risk and reward associated with this performance obligation, we have determined that we are the principal in these transactions and therefore recognize revenue on a gross basis.
Revenues from CX software-as-a-service products are recognized over time based on the term of the subscription.
36 unchanged sentences
If estimated future undiscounted net cash flows are less than the carrying value of the asset, an impairment loss is recognized to the extent its carrying value exceeds its estimated fair value.
−Removed: During the year ended June 30, 2024, we determined that the estimated fair value for certain assets at two of our delivery locations no longer exceeded their carrying value.
−Removed: The fair value of these assets was based on various assumptions including our ability to redeploy and utilize the assets at other sites.
−Removed: We recognized impairment losses related to leasehold improvements, furniture & fixtures, and computer equipment of $ 1.3 million during the year ended June 30, 2024, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income.
There were no impairment losses recognized during the years ended June 30, 2025 or 2023.
+Added: We recognized impairment losses of $ 1.3 million related to certain assets at two of our delivery locations during the year ended June 30, 2024, which was included in selling, general and administrative expense in the consolidated statements of comprehensive income .
The Company determines whether an arrangement contains a lease at inception in accordance with the provisions of ASC 842, Leases.
13 unchanged sentences
The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.
−Removed: Interest on finance leases is included in interest expense, net, in the consolidated statements of comprehensive income.
−Removed: We apply judgment in estimating the incremental borrowing rate
−Removed: including considering the term of the lease, the currency in which the lease is denominated, and the impact of collateral and our credit risk on the rate.
+Added: Interest on finance leases is included in interest expense in the consolidated statements of comprehensive income.
+Added: We apply judgment in estimating the incremental borrowing rate including considering the term of the lease, the currency in which the lease is denominated, and the impact of collateral and our credit risk on the rate.
The Company has elected the short-term lease recognition exemption for all asset classes.
3 unchanged sentences
The lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized cost using the effective interest method.
−Removed: During the year ended June 30, 2024, we determined that the estimated fair value for one of our operating leases no longer exceeded its carrying value.
−Removed: The fair value of the lease asset was based on various assumptions including market-based factors and our ability to utilize the site in the future.
−Removed: We recognized an impairment loss on the operating lease asset of $ 0.3 million during the year ended June 30, 2024, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income.
There were no impairment losses recognized during the years ended June 30, 2025 or 2023.
+Added: We recognized impairment losses of $ 0.3 million related to one of our operating leases during the year ended June 30, 2024, which was included in selling, general and administrative expense in the consolidated statements of comprehensive income.
Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired.
15 unchanged sentences
The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset.
−Removed: If a quantitative analysis is
−Removed: completed, an indefinite-lived intangible asset is evaluated for possible impairment by comparing the fair value of the asset with its carrying value.
+Added: If a quantitative analysis is completed, an indefinite-lived intangible asset is evaluated for possible impairment by comparing the fair value of the asset with its carrying value.
An impairment charge is recorded if the asset’s carrying value exceeds its estimated fair value.
+Added: During the year ended June 30, 2025, we determined that the estimated fair value of one of our trademarks no longer exceeded its carrying value.
+Added: Accordingly, we recognized an impairment loss of $ 0.3 million during the year ended June 30, 2025, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income.
No impairments were recorded during the years ended June 30, 2024 or 2023.
1 unchanged sentence
The Company accounts for financial derivative instruments under ASC 815, Derivatives and Hedging .
−Removed: The Company generally utilizes options with expirations of 12 months or less to reduce its foreign currency exposure due to exchange rate fluctuations on forecasted operating cash flows denominated in non-functional foreign currencies.
+Added: The Company generally utilizes options with expirations up to 18 months or less to reduce its foreign currency exposure due to exchange rate fluctuations on forecasted operating cash flows denominated in non-functional
+Added: foreign currencies.
In using derivative financial instruments to hedge these exposures, the Company exposes itself to counterparty credit risk.
5 unchanged sentences
For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is reported in AOCI until the hedged transaction affects earnings.
−Removed: At that time, this amount is reclassified from AOCI and recognized within cost of services or selling, general and administrative expenses, or interest expense, net, as applicable.
+Added: At that time, this amount is reclassified from AOCI and recognized within cost of services or selling, general and administrative expenses, or interest expense, as applicable.
Cash flows related to derivative contracts are classified within the operating section in the consolidated statements of cash flows.
18 unchanged sentences
The Company believes that the assumptions utilized in recording its obligation under the plan are reasonable based on its experience and market conditions.
−Removed: As of June 30, 2024 and 2023, defined benefit obligations of $ 1.3 million and $ 1.2 million, respectively, were included in other non-current liabilities in the consolidated balance sheets, and amounts recognized in the consolidated statements of comprehensive income for the years ended June 30, 2024, 2023, and 2022 were $ 0.3 million, $ 0.4 million, and $ 0.4 million, respectively.
−Removed: Share-based compensation plans
−Removed: The Company accounts for its share-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation .
+Added: As of June 30, 2025 and 2024, defined benefit obligations of $ 2.0 million and $ 1.3 million, respectively, were included in other non-current liabilities in the consolidated balance sheets, and amounts recognized in net income for the years ended June 30, 2025, 2024, and 2023 were $ 0.3 million, $ 0.3 million, and $ 0.4 million, respectively.
+Added: Stock-based compensation plans
+Added: The Company accounts for its stock-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation .
The Company calculates the fair value of option awards using the Black-Scholes model.
+Added: The Company has certain restricted stock units with service and market conditions (the TSR Awards) and calculates the fair value of these awards using a Monte Carlo model.
For equity-classified awards, total compensation cost is based on the grant date fair value.
For liability-classified awards, total compensation cost is based on the fair value of the award on the date the award is granted and is subsequently re-measured at each reporting date until settlement.
−Removed: The Company recognizes share-based compensation expense over the requisite vesting period using a graded vesting model.
+Added: The Company recognizes stock-based compensation expense over the requisite vesting period using a graded vesting model.
Awards to employees and directors may contain service, performance and/or market vesting conditions.
4 unchanged sentences
The Company accounts for a warrant to purchase its common shares as an equity instrument in accordance with the provisions of ASU No.
−Removed: 2019-08, Compensation – Stock Compensation (Topic 718) and ASC 606, which requires entities to measure and classify share-based payment awards granted to a customer by applying the guidance under Topic 718, as of January 1, 2019.
+Added: 2019-08, Compensation – Stock Compensation (Topic 718) and ASC 606, which requires entities to measure and classify stock-based payment awards granted to a customer by applying the guidance under Topic 718, as of January 1, 2019.
On the grant date, the Company measured the warrant using a Black-Scholes option pricing model.
3 unchanged sentences
At each reporting period, the Company assesses the likelihood of additional vesting in accordance with service or performance conditions included in the warrant terms.
−Removed: The Company revises its estimates for additional contra-revenue when it is probable that additional shares will vest.
+Added: The vesting period ended June 30, 2024.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
12 unchanged sentences
Purchases made pursuant to these authorizations may be carried out through open market transactions, negotiated purchases or otherwise, at times and in such amounts as the Company deems appropriate.
−Removed: Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans.
+Added: Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee stock-based award plans.
When Company shares are repurchased, the amount of the consideration paid (including directly attributable costs, net of any tax effects) is recognized as a deduction of additional paid in capital.
1 unchanged sentence
When treasury shares are subsequently sold or reissued, the amount received is recognized as an increase in additional paid in capital, and any resulting surplus or deficit on the transaction is reclassified to accumulated deficit.
−Removed: The Board will review the repurchase program periodically and may authorize adjustment of its terms and size, and suspend or discontinue the program.
+Added: The Board will review any authorized repurchase program periodically and may authorize adjustment of its terms and size, and suspend or discontinue the program.
The Company has funded and expects to fund future repurchases with its existing cash balance.
7 unchanged sentences
“Investment in Joint Venture” for more information.
+Added: Variable Interest Entity
+Added: During February 2025 and in connection with our strategic expansion into India, the Company entered into an agreement with Safeguard, LLC and its controlled affiliate (collectively, “Safeguard"), an unrelated provider of Business Process Outsourcing ("BPO") services.
+Added: The Company has a variable interest in Safeguard due to Safeguard's lack of sufficient equity.
+Added: The Company’s variable interest includes certain lease guaranty and exposure to certain severance payment obligations for Safeguard employees servicing ibex's account.
+Added: Management determined that ibex is not the primary beneficiary as ibex does not have the power to direct or control the activities which most significantly affect Safeguard's financial performance (such as engaging new clients, expanding its offerings, and engaging in financing activities, among others).
+Added: Accordingly, the Company is not required to consolidate the results of Safeguard.
+Added: The Company's primary risk of involvement with Safeguard is the loss of its investment and certain obligations that may be due in the event of early termination of the contract.
+Added: The Company’s investment, which is considered its maximum exposure to loss, of $ 1.6 million at June 30, 2025 is included in prepaid expenses and other non-current assets in the consolidated balance sheets.
+Added: As of June 30, 2025, the Company also had a refundable lease deposit of $ 0.4 million and accrued expenses of $ 0.3 million for services received during the fiscal year, which are included in other non-current assets and accounts payable and accrued liabilities, respectively, in the consolidated balance sheets.
+Added: Amounts related to early termination of the contract cannot be reasonably estimated as of June 30, 2025.
+Added: The Company believes that the possibility of a loss is remote.
+Added: For the fiscal year ended June 30, 2025, the Company did not provide any financial support to Safeguard other than its contractual commitments.
Cloud Computing Software Implementation Costs
The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor.
−Removed: In accordance with ASC 350-40, Goodwill and Other, Internal-Use Software, for cloud computing arrangements that meet the definition of a service contract, the Company capitalizes qualifying implementation costs incurred during the application development stage in other non-current assets.
+Added: In accordance with ASC 350-40, Goodwill and Other, Internal-Use Software , for cloud computing arrangements that meet the definition of a service contract, the Company capitalizes qualifying implementation costs incurred during the application development stage in prepaid expenses and other non-current assets.
Capitalized costs are primarily comprised of third-party consulting fees, direct labor, and related expenses.
1 unchanged sentence
Once available for its intended use, the capitalized costs will be amortized on a straight-line basis over the term of the associated hosting arrangement including periods covered by an option to extend, and are included in selling, general and administrative expenses in the consolidated statements of comprehensive income.
−Removed: Costs related to data conversion, overhead, general and administrative activities, and training are expensed as incurred.
−Removed: Post-configuration training and maintenance costs are expensed as incurred.
−Removed: The Company capitalized $ 3.5 million during the year ended June 30, 2024.
−Removed: There were no costs capitalized during the year ended June 30, 2023 .
−Removed: Other postemployment benefits
−Removed: During the year ended June 30, 2024, the Company eliminated certain positions that it considered redundant and incurred approximately $ 1.6 million in severance costs, of which $ 1.4 million is recorded in selling, general and administrative expense and $ 0.2 million is recorded in cost of services in the consolidated statements of comprehensive income.
−Removed: As of June 30, 2024, $ 0.8 million was accrued and is expected to be paid by July 30, 2025.
+Added: Costs related to data conversion, overhead, general and administrative activities, maintenance, and training are expensed as incurred.
+Added: The Company capitalized $ 1.2 million and $ 3.5 million during the years ended June 30, 2025 and 2024, respectively.
+Added: Other post-employment benefits
+Added: During the year ended June 30, 2025, the Company incurred approximately $ 0.6 million in severance costs for certain positions that it considered redundant, which are primarily recorded in selling, general and administrative expense in the consolidated statements of comprehensive income.
+Added: During the year ended June 30, 2024, the Company incurred approximately $ 1.6 million in severance costs, of which $ 1.4 million is recorded in selling, general and administrative expense and $ 0.2 million is recorded in cost of services in the consolidated statements of comprehensive income.
+Added: As of June 30, 2025 and 2024, the Company had accrued $ 0.6 million and $ 0.8 million, respectively, of these costs, which are included in accrued payroll and employee-related liabilities in the consolidated balance sheets.
Emerging Growth Company
3 unchanged sentences
Recently Issued Accounting Pronouncements
−Removed: In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No.
−Removed: 2023-07, Segment Reporting (Topic 280):
−Removed: Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
−Removed: In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements.
−Removed: The amendments in ASU No.
−Removed: 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
−Removed: Early adoption is permitted.
−Removed: We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements.
−Removed: In December 2023, the FASB issued ASU No.
+Added: In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No.
2023-09, Income Taxes (Topic 740):
4 unchanged sentences
Early adoption is permitted.
−Removed: We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements.
+Added: We expect the adoption of this guidance will modify our disclosures, but we do not expect the ASU will have a material impact on our consolidated financial statements.
In March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements.
2 unchanged sentences
On April 4, 2024, the SEC determined to voluntarily stay the final rules pending certain legal challenges.
−Removed: We are currently evaluating the impact of the new rules on the disclosures to our consolidated financial statements.
+Added: On March 27, 2025, the SEC voted to end its defense of the climate disclosure rules, and on April 24, 205, the U.S.
+Added: Eighth Circuit Court of Appeals ordered the litigation to be held in abeyance and directed the SEC to indicate within 90
+Added: days whether the SEC will reconsider or review the climate disclosure rules.
+Added: On July 23, 2025, the SEC filed a status report with the court, requesting it to terminate the abeyance and resolve the merits of the challenge to the climate disclosure rules.
+Added: We continue to monitor for any updates and evaluate the impact of the new rules on the disclosures to our consolidated financial statements.
+Added: Recently adopted accounting pronouncements
+Added: In November 2023, FASB issued ASU No.
+Added: 2023-07, Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures , which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
+Added: In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements.
+Added: The Company adopted ASU 2023-07 for the fiscal year ended June 30, 2025, with retrospective application to all periods presented in these financial statements.
+Added: See Note 18, “Segment Information.”
REVENUE FROM CONTRACTS WITH CUSTOMERS
1 unchanged sentence
However, the Company delivers most of its services from regional customer experience delivery centers that are located in geographies outside of the United States.
−Removed: Our global delivery model is built on regional customer experience delivery centers and includes a unique ability to support work-at-home capabilities in any region that we currently operate.
−Removed: The Company generated its revenue from clients based in the United States and other countries as below:
−Removed: ($000s) June 30,
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Our global delivery model is built on regional customer experience delivery centers and includes a unique ability to support work-at-home capabilities in any region.
+Added: The Company generated its revenue from clients based in the United States and other countries as shown below:
+Added: Year Ended June 30,
+Added: ($000s) 2025 2024 2023
United States $ 537,781 $ 493,015 $ 509,170
2 unchanged sentences
The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided for the years ended:
−Removed: ($000s) June 30,
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year Ended June 30,
+Added: ($000s) 2025 2024 2023
Onshore (United States) $ 136,020 $ 120,153 $ 145,401
−Removed: Offshore (Philippines, Pakistan) 244,825 221,913 186,902
+Added: Offshore (Philippines, Pakistan, India) 282,289 244,825 221,913
Nearshore (Jamaica, Nicaragua, Honduras) 139,964 143,591 155,804
1 unchanged sentence
The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition for the years ended:
−Removed: ($000s) June 30,
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year Ended June 30,
+Added: ($000s) 2025 2024 2023
Pattern of Revenue recognition
2 unchanged sentences
$ 558,273 $ 508,569 $ 523,118
−Removed: The movement in the deferred revenue is as follows:
+Added: The movement in deferred revenue was as follows:
($000s) June 30,
11 unchanged sentences
Accounts receivable, net $ 117,136 $ 98,366
−Removed: The Company will write-off accounts receivable against the allowance when it determines a balance is uncollectible, and wrote-off $ 0.1 million and $ 1.4 million for the years ended June 30, 2024 and 2023, respectively.
−Removed: Write-offs for the fiscal year ended June 30, 2022 were not material.
+Added: The Company will write-off accounts receivable against the allowance when it determines a balance is uncollectible.
Activity in the Company’s allowance for credit losses consists of the following:
8 unchanged sentences
Significant Client
−Removed: During the years ended June 30, 2024 and 2023, the Company had one client that contributed approximately 12 % of total revenue, respectively.
+Added: During the years ended June 30, 2025 and 2024, the Company had one client that contributed approximately 11 % and 12 % of total revenue, respectively.
As of June 30, 2025 and 2024, the accounts receivable from this client was $ 9.2 million and $ 13.6 million, respectively.
21 unchanged sentences
Jamaica 5,452 8,659
−Removed: Nicaragua 2,082 3,421
−Removed: Honduras 795 565
+Added: Other countries 3,171 2,877
$ 32,563 $ 29,862
Depreciation expense, which includes depreciation expense for finance lease assets, for the Company was $ 17.2 million, $ 19.5 million, and $ 19.0 million for the years ended June 30, 2025, 2024, and 2023, respectively.
−Removed: The Company has operating lease obligations primarily for our delivery centers and finance lease obligations primarily for vehicles and other equipment.
−Removed: Leases typically have initial terms of two to fifteen years , and may include renewal options if the Company is reasonably certain to exercise such options.
+Added: The Company has operating lease obligations primarily for its delivery centers and finance lease obligations primarily for vehicles and other equipment.
+Added: Leases typically have initial terms of two to 15 years, and may include renewal options if the Company is reasonably certain to exercise such options.
The components of lease cost are as follows:
−Removed: ($000s) June 30,
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year Ended June 30,
+Added: ($000s) 2025 2024 2023
Operating lease cost:
19 unchanged sentences
The following table presents supplemental cash flow information related to leases:
−Removed: ($000s) June 30,
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year Ended June 30,
+Added: ($000s) 2025 2024 2023
Cash paid for amounts included in the measurement of lease liabilities $ 14,403 $ 13,528 $ 14,309
10 unchanged sentences
Operating lease liabilities $ ( 2,426 ) $ ( 3,689 )
+Added: During the year ended June 30, 2025, the Company entered into four significant lease agreements and four significant renewals resulting in noncash operating lease additions of $ 7.9 million and $ 14.8 million, respectively, compared to one significant renewal resulting in noncash operating lease additions of $ 4.0 million during the year ended June 30, 2024.
2025 June 30,
12 unchanged sentences
2029 16,067 —
−Removed: 2029 12,082 —
Thereafter 6,968 —
6 unchanged sentences
Other Intangible Assets
−Removed: The carrying amount of indefinite-lived intangible assets (trademarks) at both June 30, 2024 and 2023 was $ 0.7 million and is included in other non-current assets in the consolidated balance sheets.
−Removed: During the years ended June 30, 2024 and 2023, the Company performed a qualitative assessment and determined that no impairment was necessary.
+Added: During the year ended June 30, 2025, we determined that the estimated fair value of one of our trademarks no longer exceeded its carrying value.
+Added: Accordingly, we recognized an impairment loss of $ 0.3 million during the year ended June 30, 2025, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income.
+Added: There was no impairment recorded during the year ended June 30, 2024.
+Added: The carrying amount of indefinite-lived intangible assets (trademarks) at June 30, 2025 and 2024 was $ 0.4 million and $ 0.7 million, respectively, and is included in other non-current assets in the consolidated balance sheets.
Foreign exchange contracts
1 unchanged sentence
The collars are designated as cash flow hedges upon inception, in accordance with ASC 815, in order to match the financial results of the hedges with the forecasted transactions.
−Removed: These contracts cover periods commensurate with the expected exposure, generally three to twelve months .
−Removed: We execute our contracts with our primary banking partner, PNC Bank, National Association (“PNC”).
−Removed: The Company has not experienced any material issues related to derivative counterparty defaults.
−Removed: The following table shows the notional amount and fair value of our foreign exchange cash flow hedging instruments as of June 30, 2024 and 2023:
+Added: These contracts cover periods commensurate with the expected exposure, generally one to eighteen months .
+Added: The Company has not experienced any counterparty defaults.
+Added: The following tables show the notional amount and fair value of our foreign exchange cash flow hedging instruments as of June 30, 2025 and 2024:
Settlement date Hedged
2 unchanged sentences
($000s) Fair Value
+Added: Foreign currency option contracts - assets
+Added: July 7, 2025 through September 21, 2026 PHP 55.50 - 60.05
+Added: Fair value as of June 30, 2024 $ —
+Added: Fair value as of June 30, 2025 $ 724
+Added: Settlement date Hedged
+Added: currency Foreign
+Added: currency rate Notional
+Added: ($000s) Fair Value
Foreign currency option contracts - liabilities
−Removed: July 8, 2024 through December 19, 2024 PHP 54.00 - 57.50
+Added: July 7, 2025 through September 21, 2026 PHP 55.50 - 60.05
Fair value as of June 30, 2024 $ 335
Fair value as of June 30, 2025 $ —
−Removed: The fair value of the collars is included in accounts payable and accrued liabilities in the consolidated balance sheets.
−Removed: Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in AOCI.
+Added: The fair value of the collars is included in other current assets in the consolidated balance sheets as of June 30, 2025, and in accounts payable and accrued liabilities as of June 30, 2024.
+Added: Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income (loss) ("AOCI").
Amounts previously recognized in AOCI are reclassified to cost of services in the periods in which the hedged expenses occur.
−Removed: Refer to Note 14.
−Removed: "Stockholders' Equity" for further details on the change in fair value of our cash flow hedges and the net gain or loss reclassified to earnings from effective hedges during the years ended June 30, 2024, 2023 and 2022.
+Added: Refer to Note 14, "Stockholders' Equity" for further details on the change in fair value of our cash flow hedges and the net gain or loss reclassified to earnings from effective hedges during the years ended June 30, 2025, 2024 and 2023.
Debt consists of the following:
1 unchanged sentence
2025 June 30,
−Removed: PNC Credit Facility $ — $ 52
Finance leases $ 1,619 $ 1,527
Total debt $ 1,619 $ 1,527
−Removed: Current maturities of long-term debt and finance leases ( 660 ) ( 413 )
+Added: Current debt ( 823 ) ( 660 )
Total long-term debt $ 796 $ 867
−Removed: Revolving credit facility
PNC Credit Facility
In November 2013, the Company’s subsidiary, Ibex Global Solutions, Inc.
−Removed: (formerly known as TRG Customer Solutions, Inc.), entered into the three-year $ 35.0 million revolving credit facility with PNC (as amended, the “PNC Credit Facility”).
−Removed: Between June 2015 and March 2021, the PNC Credit Facility was amended multiple times for increases to the maximum revolving advance amount and extensions of the maturity date.
−Removed: In March 2021, the PNC Credit Facility was amended to join its wholly owned subsidiaries, Digital Globe Services, LLC, TelSatOnline, LLC and 7 Degrees, LLC as borrowers.
−Removed: In September 2021, the PNC Credit Facility was amended to join its wholly owned subsidiary, iSky, LLC as a borrower.
−Removed: In June 2022, the PNC Credit Facility was amended to increase the maximum revolving advance amount to $ 80 million, with the ability to request increases, up to a maximum revolving advance amount of $ 95 million (contingent upon lender approval), change the reference rate used from LIBOR to Term Secured Overnight Financing Rate (“SOFR”) and extend the maturity date to May 2026.
−Removed: In May 2024, the Company's subsidiaries, Ibex Global Solutions, Inc., Digital Globe Services, LLC, TelSatOnline, LLC, 7 Degrees, LLC, and iSky, LLC (collectively, the "Borrowers") entered into the Seventeenth Amendment to the PNC Credit Facility (the "Amendment") with PNC.
−Removed: The Amendment provides PNC's consent to the assignment of certain customer contracts (the "Contract Assignments") by the Borrowers to the Company's subsidiary, Ibex Global FZ-LLC, provided that (i) the contract revenues associated with such Contract Assignments, upon the effectiveness of such Contract Assignments, shall not in the aggregate be greater than $ 175 million and (ii) the Borrowers comply with additional reporting requirements to PNC.
−Removed: Borrowings under the PNC Credit Facility bear interest at SOFR plus a margin of 1.75 % and/or negative 0.5 % of the PNC Commercial Lending Rate for domestic loans.
−Removed: The PNC Credit Facility also requires a commitment fee of 0.25 % per annum of undrawn commitments to be paid quarterly in arrears.
−Removed: The PNC Credit Facility is guaranteed by IBEX Global Limited and secured by substantially all the assets of the Borrowers.
−Removed: As of June 30, 2024, the Company had $ 79.0 million of borrowing available under the PNC Credit Facility based on eligible collateral.
−Removed: The PNC Credit Facility contains certain financial, operating, and other covenants, including, among other things, covenants restricting additional borrowings, paying any dividends and making certain investments.
+Added: entered into an agreement, as amended, with PNC Bank, National Association (“PNC”), for a revolving credit facility (“PNC Credit Facility”).
+Added: The PNC Credit Facility provided a maximum revolving advance amount of $ 80 million.
+Added: The PNC Credit Facility was terminated and repaid in full on October 29, 2024, and replaced by the HSBC Credit Facilities (as defined and described below).
+Added: In connection with the termination of the PNC Credit Facility, the Company recognized a loss on extinguishment of $ 0.2 million during the year ended June 30, 2025, which is included in interest expense in the consolidated statements of comprehensive income, and in cash paid for interest in the consolidated statements of cash flow.
+Added: HSBC Credit Facilities
+Added: The HSBC Credit Facilities consist of the U.S.
+Added: Credit Facility and the UAE Facilities (as defined and described below and collectively, the “HSBC Credit Facilities”).
+Added: Credit Agreement
+Added: On October 29, 2024 (the "Effective Date"), the Company's subsidiaries, Ibex Global Solutions, Inc.
+Added: ("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.
+Added: Credit Agreement”), which provides for a $ 25 million secured revolving credit facility (the “U.S.
+Added: Credit Facility”).
+Added: 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 below).
+Added: Borrowings under the U.S.
+Added: Credit Facility bear interest at a per annum rate equal to SOFR plus 2 %, or equal to alternate base rate plus 1 %.
+Added: 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.
+Added: subsidiaries of Ibex US, with an additional guaranty by the Company and Ibex Global Limited.
+Added: UAE Credit Agreement
+Added: On the Effective Date, the Company's subsidiary, Ibex Global FZ-LLC (the “UAE Company”) entered into:
+Added: (i) a revolving loan agreement (committed) together with (ii) a facility offer letter (“FOL”);
+Added: (iii) a general terms and conditions applicable to corporate banking credit facilities;
+Added: and (iv) a letter of deviation (collectively, the “UAE Credit Agreement”), in each case, with HSBC Bank Middle East Limited ("HSBC UAE”).
+Added: 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”).
+Added: The final repayment date for the UAE Credit Agreement is two years from
+Added: the Effective Date.
+Added: The UAE Loan Facility is secured by the accounts receivable of the UAE Company and an irrevocable and unconditional guarantee provided by the Company 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.
+Added: On May 22, 2025, the FOL was amended to add an additional $ 119,809 to the UAE Facilities for bid and performance bond guarantees issued by HSBC UAE (“Bond Guarantees”).
+Added: The Bond Guarantees are secured by cash collateral provided by the UAE Company.
+Added: Borrowings under the UAE Loan Facility bear interest at a per annum rate equal to 3-month term SOFR plus 2 %.
+Added: The Commercial Card Facility is subject to HSBC UAE’s standard commercial card terms and conditions.
+Added: The Bond Guarantees are subject to HSBC UAE’s standard commercial terms and conditions.
+Added: As of June 30, 2025, the Company did not have any outstanding balances on the HSBC Credit Facilities, and had $ 71.4 million of borrowing available under the HSBC Credit Facilities based on eligible collateral.
+Added: 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.
The Company was in compliance with all debt covenants as of June 30, 2025.
+Added: 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 June 30, 2025.
As of June 30, 2025, the Company is party to non-cancelable purchase obligations that mainly relate to long term telecommunications contracts and enterprise cloud solutions for the continuing operation of our business.
7 unchanged sentences
The Company determined the grant date fair value of the warrant using the Black-Scholes option pricing model.
−Removed: The warrant shares vest on the satisfaction of specified milestones tied to Amazon’s purchase of services from the Company during a seven-and-a-half-year period ended on June 30, 2024.
−Removed: The vesting is partially accelerated in the event of a reorganization transaction (as defined in the warrant).
+Added: A total of 1,171,812 warrant shares vested on the satisfaction of specified milestones tied to Amazon’s purchase of services from the Company during the vesting period, which ended on June 30, 2024.
Amazon is entitled to customary shelf and piggy-back registration rights with respect to the shares issued upon exercise of the warrant.
Amazon may not transfer the warrant except to a wholly-owned subsidiary of Amazon.
−Removed: As of June 30, 2024 and 2023, 1,171,812 and 1,004,410 warrant shares were vested, respectively.
To date, the warrant has not been exercised, expired or cancelled.
−Removed: The Company recorded contra revenue of approximately $ 1.2 million, $ 1.1 million, and $ 1.0 million during the years ended June 30, 2024, 2023, and 2022, respectively.
−Removed: SHARE BASED COMPENSATION
−Removed: The following tables summarize the components of share-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan:
+Added: The Company did not record any warrant contra revenue during the year ended June 30, 2025, and recorded approximately $ 1.2 million and $ 1.1 million during the years ended June 30, 2024 and 2023, respectively.
+Added: STOCK-BASED COMPENSATION
+Added: The following tables summarize the components of stock-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan:
Year ended June 30,
−Removed: 2024 2023 2022
+Added: ($000s) 2025 2024 2023
Cost of services $ 508 $ 76 $ 298
Selling, general and administrative 4,924 3,689 4,308
−Removed: Total stock compensation expense $ 3,765 $ 4,606 $ 1,851
+Added: Total stock-based compensation expense $ 5,432 $ 3,765 $ 4,606
Year ended June 30,
−Removed: 2024 2023 2022
+Added: ($000s) 2025 2024 2023
Phantom Stock Plans $ 1,698 $ ( 152 ) $ 800
1 unchanged sentence
2020 Long Term Incentive Plan 3,734 3,917 3,813
−Removed: Total stock compensation expense $ 3,765 $ 4,606 $ 1,851
+Added: Total stock-based compensation expense $ 5,432 $ 3,765 $ 4,606
Phantom Stock Plans
15 unchanged sentences
The total pre-tax intrinsic value of the options exercised during the years ended June 30, 2025, 2024, and 2023 was $ 0.4 million, $ 0.0 million , and $ 0.6 million , respectively.
−Removed: The liability for outstanding phantom stock options as of June 30, 2024 and 2023 was $ 1.0 million a nd $ 1.2 million, respectively, and is included in accrued liabilities and other non-current liabilities in the consolidated balance sheets.
+Added: The liability for outstanding phantom stock options as of June 30, 2025 and 2024 was $ 2.3 million and $ 1.0 million, respectively, and is included in accrued liabilities and other non-current liabilities in the consolidated balance sheets.
Phantom stock option awards vest based on service conditions.
2 unchanged sentences
These include the price per share, expected term, expected volatility, expected dividend yield and the risk-free interest rate.
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year ended June 30,
+Added: 2025 2024 2023
Expected term 1.33 - 6.94 years
6 unchanged sentences
Risk-free interest rate 3.69 % - 3.97 %
−Removed: 4.05 % to 4.87 %
4.33 % - 4.90 %
+Added: 4.05 % - 4.87 %
The assumptions used in the Black-Scholes model are estimated as follows:
9 unchanged sentences
As of June 30, 2025, the unrecognized compensation expense associated with the phantom stock plans is $ 0.5 million, which will be recognized over the remaining weighted average vesting period of 2.93 years using a graded vesting model .
−Removed: 2018 Restricted Share Plan
−Removed: On December 21, 2018, our Board and shareholders approved and adopted the Company’s 2018 Restricted Share Plan (the “2018 RSA Plan”).
−Removed: As of May 20, 2020, the Company will not issue further shares under the 2018 RSA Plan and the remaining shares of 707,535 were transferred to the 2020 Long Term Incentive Plan.
−Removed: Executive Leadership Team awards
−Removed: Performance-based restricted stock awards (“RSA”) were granted under the 2018 RSA Plan to executive leadership team employees and vested based on certain performance criteria, which have all been met, in addition to service conditions.
−Removed: A summary of the unvested RSAs is as follows:
−Removed: Shares Weighted Average
−Removed: Unvested as of June 30, 2023 6,284 $ 0.61
−Removed: Vested ( 6,284 ) 0.61
−Removed: Forfeitures / cancellations / expirations — —
−Removed: Unvested as of June 30, 2024 — $ —
2020 Long Term Incentive Plan
3 unchanged sentences
Stock options
−Removed: The Company granted stock options to new and existing employees and members of the Board over the last four fiscal years.
+Added: The Company periodically grants stock options to employees and members of the Board.
These awards are subject to service-based, and in some cases, performance- and market-based vesting conditions and generally vest in monthly, quarterly, or annual installments over two to four years .
3 unchanged sentences
Exercise Price Weighted Average
−Removed: Contractual Term (years) Aggregate intrinsic
+Added: Contractual Term
+Added: (years) Aggregate intrinsic
Outstanding as of June 30, 2024 956,383 $ 18.31 7.25 $ 962
−Removed: Granted 142,000 15.62 9.75
Exercised ( 271,539 ) 15.85 5.60 2,579
2 unchanged sentences
Vested and exercisable as of June 30, 2025 454,253 $ 18.83 5.93 $ 4,667
−Removed: The weighted-average grant-date fair value of options granted during the years ended June 30, 2024, 2023, and 2022 was $ 6.70 , $ 10.37 , and $ 6.04 , respectively.
+Added: There were no options granted during the year ended June 30, 2025.
+Added: The weighted-average grant-date fair value of options granted during the years ended June 30, 2024 and 2023 were $ 6.70 , and $ 10.37 , respectively.
The total pre-tax intrinsic value of the options exercised during the years ended June 30, 2025, 2024, and 2023 was $ 2.6 million, $ 0.1 million, and $ 1.0 million, respectively.
We use the Black-Scholes model to determine the grant-date fair value of the stock options, which was estimated using the following assumptions:
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year ended June 30,
Expected term 6.12 years
−Removed: 6.08 - 7.00 years
Expected volatility 35.49 % - 35.87 %
32.89 % - 33.39 %
−Removed: 31.30 % - 31.54 %
Expected dividend yield 0.00 % 0.00 %
1 unchanged sentence
3.75 % to 4.11 %
−Removed: 1.28 % to 2.00 %
The assumptions used in the Black-Scholes model are estimated as follows:
8 unchanged sentences
Estimated based on the simplified method as we do not have adequate historical data.
−Removed: Restricted stock units
−Removed: The Company granted restricted stock units (“RSU”) over the last three fiscal years, which vest based on service conditions over four years .
−Removed: The Company granted restricted stock units that are subject to service and performance conditions over the last three fiscal years, which are referred to as performance-based restricted stock units (“PRSU”).
+Added: Restricted stock units (“RSU”)
+Added: The Company periodically grants RSUs which vest based on service conditions over four years .
+Added: Performance-based restricted stock units (“PRSU”)
+Added: The Company periodically grants PRSUs.
+Added: PRSUs are subject to service and performance conditions.
Performance triggers are based on revenue or EBITDA targets.
5 unchanged sentences
The total fair value of RSU and PRSU awards vested during the years ended June 30, 2025, 2024, and 2023 was $ 0.2 million, $ 0.3 million and $ 0.6 million, respectively.
−Removed: A summary of the unvested RSU and PRSU activity for the year ended June 30, 2024 is as follows:
+Added: Market- and Service-based restricted stock units (“TSR Awards”)
+Added: During the fiscal year ended June 30, 2025, the Company granted 65,054 RSUs that are subject to service and market conditions based upon the Company's Total Shareholder Return ("TSR") as compared with the TSR of a defined set of peer companies.
+Added: The number of TSR Awards eligible to vest may range from zero to 200 % the granted amount depending on the Company’s performance.
+Added: The TSR Awards will vest equally over three separate performance periods ending on September 30, 2025, September 30, 2026, and September 30, 2027 if the vesting requirements are met.
+Added: The Company used a Monte Carlo model to calculate the fair value of the TSR Awards using the following assumptions:
+Added: Weighted average remaining performance period
+Added: (Years) Expected volatility Expected dividend yield Risk-free interest rate
+Added: 2025 Awards 1.6 44 % 0.00 % 4.2 % to 4.4 %
+Added: • Expected dividend yield:
+Added: zero percent , as we do not anticipate paying dividends on our common shares.
+Added: • Expected volatility:
+Added: Based on the historical stock price volatility of the Company with a look back period commensurate with a term of the award.
+Added: • Risk-free interest rate:
+Added: Based on the U.S.
+Added: Treasury yield curve in effect at the time of grant.
+Added: • Weighted average remaining performance period:
+Added: Based on remaining performance period at the time of the grant.
+Added: The grant-date fair value of the TSR Awards was $ 26.25 per award.
+Added: A summary of the unvested RSU, PRSU, and TSR Awards activity for the year ended June 30, 2025 is as follows:
Shares Weighted Average
4 unchanged sentences
Unvested as of June 30, 2025 762,767 $ 18.19
−Removed: As of June 30, 2024, there was app roximately $ 5.7 million of total unrecognized compensation expense related to the 2020 LTIP options, RSU, and PRSU awards, which will be recognized over the remaining weighted average vesting period of 2.92 years using a graded vesting model.
+Added: As of June 30, 2025, there was app roximately $ 6.6 million of total unrecognized compensation expense related to the 2020 LTIP awards, which will be recognized over the remaining weighted average vesting period of 3.75 years.
The fair value hierarchy prioritized the input to valuation techniques used to measure fair value.
11 unchanged sentences
The Company uses the Black-Scholes option pricing model to value our phantom stock awards.
−Removed: All inputs to the model are derived from active market information for identical or similar instruments, including stock price, volatility, and interest rates.
+Added: All inputs to the model are derived from active market information for identical or similar instruments, including stock price,
+Added: volatility, and interest rates.
The inputs to the valuation pricing models are observable in the market, and as such the phantom stock awards are classified as Level 2 in the fair value hierarchy.
7 unchanged sentences
Cash flow hedge - foreign currency collars, net $ — $ 724 $ —
+Added: Total assets $ — $ 724 $ —
Phantom stock options $ — $ 2,341 $ —
9 unchanged sentences
Total liabilities $ — $ 1,349 $ —
−Removed: These balances are included in accounts payable and accrued liabilities and other non-current liabilities in the consolidated balance sheets.
+Added: These balances are included in other current assets, accounts payable and accrued liabilities, and other non-current liabilities in the consolidated balance sheets.
There were no transfers between the different hierarchy levels in the years ended June 30, 2025 and 2024 .
Income before income taxes includes the following components:
+Added: Year ended June 30,
($000s) 2025 2024 2023
2 unchanged sentences
Total $ 45,932 $ 40,986 $ 40,326
−Removed: The major components of the provision for income tax expense (benefit) are as follows:
−Removed: ($000s) June 30,
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: The major components of the provision for income tax expense are as follows:
+Added: Year ended June 30,
+Added: ($000s) 2025 2024 2023
Current tax expense:
7 unchanged sentences
Foreign 62 324 ( 457 )
−Removed: Total deferred expense (benefit) $ 355 $ 4,405 $ ( 5,299 )
−Removed: Provision for income tax expense (benefit) $ 7,331 $ 8,744 $ ( 2,077 )
+Added: Total deferred (benefit) / expense $ ( 3,118 ) $ 355 $ 4,405
+Added: Provision for income tax expense $ 9,068 $ 7,331 $ 8,744
The Company’s income tax provision includes the results of the Company’s U.S.
−Removed: operations and its various foreign operations including subsidiaries based in the United Kingdom, European Union, Canada, Jamaica, Nicaragua, Pakistan, Senegal, Honduras, and the Philippines.
−Removed: Historically, the Company’s Bermuda-based companies are not subject to income tax as there is no corporate income tax in Bermuda.
+Added: operations and its various foreign operations including subsidiaries based in Canada, Jamaica, Nicaragua, Pakistan, Honduras, the Philippines, United Arab Emirates, and Saudi Arabia.
+Added: Historically, the Company’s Bermuda-based companies have not been subject to income tax as there is no corporate income tax in Bermuda.
On December 27, 2023, the Bermuda Corporate Income Tax Act 2023 was passed which provides for a 15% corporate tax rate beginning on or after January 1, 2025 for companies with revenue in excess of 750 million Euros.
−Removed: The Company is evaluating the impact of this legislation, but it does not anticipate that it will have a material impact on the Company’s operations.
+Added: The Company continues to evaluate the impact of this legislation, but it does not anticipate that it will have a material impact on the Company’s operations.
Differences between U.S.
federal statutory income tax rates and our effective tax rates for the years ended June 30, 2025, 2024, and 2023 are as follows:
−Removed: 2024 June 30,
−Removed: 2023 June 30,
+Added: Year ended June 30,
+Added: 2025 2024 2023
federal statutory rate 21.0 % 21.0 % 21.0 %
4 unchanged sentences
Prior year provision / other items ( 0.1 ) % 0.5 % 3.1 %
−Removed: Unrecognized losses utilized during the year — % — % ( 0.7 ) %
Change in valuation allowance ( 0.1 ) % ( 0.9 ) % 3.6 %
1 unchanged sentence
The effective tax rate was 19.7 % and 17.9 % for the fiscal years ended June 30, 2025 and 2024, respectively.
−Removed: The decrease in the effective tax rate between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded in the prior year.
+Added: The increase in the effective tax rate between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded in the prior year.
We have been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of Nicaragua, Pakistan, Honduras, Jamaica, and certain qualifying locations in the Philippines.
Generally, a Tax Holiday is an agreement between us and a foreign government under which we receive certain tax benefits in that country.
−Removed: In Nicaragua, we have been granted approval of exemption from income taxes until 2025, which can be extended for another 10 years upon application.
+Added: In Nicaragua, we have been granted approval of exemption from income taxes through October 2025, which is expected to be extended for another 10 years upon application.
In Pakistan, we have been granted approval for an indefinite exemption from income taxes on all exported IT services.
−Removed: In Honduras, we have been granted approval of exemption from income taxes under the Free Tax Zone Law until 2033.
+Added: In Honduras, we
+Added: have been granted approval of exemption from income taxes under the Free Tax Zone Law until 2033.
In Jamaica, we have been granted the Special Economic Zone (SEZ) developer status for multiple sites, which provides the Company with various tax incentives under the Jamaica SEZ Act including lower income tax rates.
7 unchanged sentences
Deferred tax assets
−Removed: Provision for credit losses $ — $ 99
Provision for employee benefits and other expenses 4,201 1,724
−Removed: Tax credit carryforwards — 2,427
Section 174 research and development capitalization 1,630 1,116
1 unchanged sentence
Property and equipment, net 1,337 687
−Removed: Intangible assets — 3
Lease liability (right of use assets) 3,767 5,048
4 unchanged sentences
Deferred tax liabilities
−Removed: Property and equipment, net $ — $ ( 732 )
Right of use assets ( 3,199 ) ( 3,957 )
5 unchanged sentences
gross federal net operating loss carry forwards as of June 30, 2025 and 2024, respectively, and gross state net operating loss carry forwards of approximately $ 11.3 million and $ 12.4 million as of June 30, 2025 and 2024, respectively, which may be available to offset state income tax liabilities in the future.
−Removed: The state net operating losses will expire based on each state income tax laws.
−Removed: The Company’s Canadian subsidiary has net operating loss carry forward of $ 2.1 million as of June 30, 2024 and 2023, respectively, which will begin to expire in 2028.
−Removed: The Company’s UK and European subsidiaries have net operating loss carry forward of $ 2.2 million and $ 3.4 million, as of June 30, 2024 and 2023, respectively, which can be carried forward indefinitely.
+Added: The state net operating losses will expire based on each state’s income tax laws.
+Added: The Company’s Canadian subsidiary had net operating loss carry forwards of $ 2.1 million as of June 30, 2025 and 2024, respectively, which will begin to expire in 2028.
+Added: The Company’s UK and European subsidiaries had net operating loss carry forwards of $ 2.4 million and $ 2.2 million as of June 30, 2025 and 2024, respectively, which can be carried forward indefinitely.
These amounts are estimated amounts for the year ended June 30, 2025, and based on the income tax returns filed for the year ended June 30, 2024.
4 unchanged sentences
or in the local country.
−Removed: The Company is subject to income tax in several jurisdictions and significant judgment is required in determining the provision for income taxes.
−Removed: During the ordinary course of business, there are transactions and
−Removed: calculations for which the ultimate tax determination is uncertain.
−Removed: As a result, the Company recognizes tax liabilities based on estimates of whether additional taxes and interest will be due.
−Removed: There are no material uncertain tax treatments that would require adjustment to income tax expense.
Under accounting standards for uncertainty in income taxes (ASC 740-10), a company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position.
The term “tax position” in the accounting standards for income taxes refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods.
−Removed: There were no unrecognized tax benefits in the years ended June 30, 2024, 2023, and 2022 that, if recognized, would affect the Company’s effective tax rate.
−Removed: We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense/(benefit).
+Added: A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
+Added: ($000s) June 30,
+Added: 2025 June 30,
+Added: 2024 June 30,
+Added: Beginning balance $ — $ — $ —
+Added: Additions for tax positions related to current year — — —
+Added: Additions for tax positions of prior years 1,032 — —
+Added: Additions for acquisitions — — —
+Added: Reductions for tax positions of prior years — — —
+Added: Reductions for settlements — — —
+Added: Reductions for expiration of statute of limitations — — —
+Added: Effect of foreign currency transactions — — —
+Added: Ending balance $ 1,032 $ — $ —
+Added: The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $ 0.8 million as of June 30, 2025.
+Added: There were no tax benefits included in the balance of unrecognized tax benefits for the years ended June 30, 2024 and 2023 that, if recognized, would affect the Company’s effective tax rate.
+Added: We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.
We have not recorded any interest expense or penalties in income tax expense for the years ended June 30, 2025, 2024 and 2023.
We do not have any interest or penalties accrued as of June 30, 2025 and 2024.
+Added: Over the next 12 months, the amount of the Company’s liability for unrecognized income tax benefits shown above is not expected to change materially.
We file numerous consolidated and separate income tax returns in the U.S.
3 unchanged sentences
Tax return filings in Canada for the year ended June 2022 and onward are still open for examination.
−Removed: Tax return filings in Luxembourg for the year ended June 2019 and onward are still open for examination as well as Cyprus tax returns for their tax years ending June 2018.
−Removed: In April 2024, one of our foreign jurisdictions received an assessment relating to a fiscal year 2020.
−Removed: As of June 30, 2024, the Company had recorded a reserve of $ 0.2 million related to this assessment.
+Added: Tax return filings in Luxembourg for the year ended June 2020 and onward are still open for examination as well as Cyprus tax returns for the years ended June 2019.
+Added: Public Law No:
+Added: 119-21, the One Big Beautiful Bill Act (the “Act”) was signed on July 4, 2025, which marks the date of enactment for the tax provisions included in the Act.
+Added: The Company is evaluating the impact of this enactment.
In June 2024, a U.S.
subsidiary received a letter from the Internal Revenue Services (“IRS”) requesting information for examination of the year ended June 30, 2022.
−Removed: While we believe that our tax positions are appropriate and in compliance with U.S.
−Removed: federal law, the final determination of any tax, audit, or related litigation could be materially different from our historical tax provisions and accruals.
−Removed: The specific areas of focus for the examination are not yet fully determined.
+Added: The IRS performed and concluded the review of the examination.
+Added: A final Letter 590, dated May 27, 2025 was issued stating that no changes have been made to the reported tax period under review.
STOCKHOLDERS’ EQUITY
−Removed: The following table presents changes by component for the years ended June 30, 2024, 2023, and 2022:
+Added: The following table presents changes by component:
($000s) Foreign
4 unchanged sentences
Foreign currency translation ( 2,234 ) — — ( 2,234 )
−Removed: Actuarial gains on defined benefit plan — — 287 287
−Removed: Unrealized losses on cash flow hedges — ( 905 ) — ( 905 )
−Removed: Reclassifications to earnings — 364 153 517
−Removed: Tax provision — 218 — 218
−Removed: Balance as of June 30, 2022 $ ( 4,026 ) $ ( 639 ) $ 103 $ ( 4,562 )
−Removed: Foreign currency translation ( 2,234 ) — ( 2,234 )
Actuarial losses on defined benefit plan — — ( 120 ) ( 120 )
9 unchanged sentences
Balance as of June 30, 2024 $ ( 7,883 ) $ ( 235 ) $ 205 $ ( 7,913 )
+Added: Foreign currency translation 1,114 — — 1,114
+Added: Actuarial losses on defined benefit plan — — ( 312 ) ( 312 )
+Added: Unrealized gains on cash flow hedges — 1,028 — 1,028
+Added: Reclassifications to earnings — 32 — 32
+Added: Tax benefit — ( 285 ) — ( 285 )
+Added: Balance as of June 30, 2025 $ ( 6,769 ) $ 540 $ ( 107 ) $ ( 6,336 )
The following table presents the reclassifications from AOCI to the consolidated statements of comprehensive income:
4 unchanged sentences
Foreign currency translation gain $ — $ — $ 173 Selling, general and administrative expense
−Removed: Gains / (losses) on foreign currency hedges $ ( 257 ) $ ( 1,201 ) $ ( 319 ) Cost of services
−Removed: Gains / (losses) on interest rate swap — 45 ( 45 ) Interest expense, net
−Removed: Tax provision ( 44 ) 162 ( 218 ) Provision for income taxes
+Added: Losses on foreign currency hedges $ ( 32 ) $ ( 257 ) $ ( 1,201 ) Cost of services
+Added: Gains on interest rate swap — — 45 Interest expense
+Added: Tax benefit / (provision) 285 ( 44 ) 162 Provision for income taxes
Total derivative valuation $ 253 $ ( 301 ) $ ( 994 )
Amortization related to defined benefit plan $ — $ — $ ( 89 ) Cost of services
+Added: TRGI Purchase Agreement
+Added: On November 19, 2024, we entered the TRGI Purchase Agreement, pursuant to which we purchased 3,562,341 issued and outstanding common shares of the Company for an aggregate price of $ 70 million from The Resource Group International Limited ("TRGI"), of which $ 45 million was paid in cash and $ 25 million was paid in the form of a convertible promissory note.
+Added: The convertible promissory note was repaid on January 9, 2025.
Share repurchase programs
The Board may authorize share repurchases of the Company’s common shares and the Company had multiple share repurchase plans during the years ended June 30, 2025 and 2024.
−Removed: On May 1, 2024, the Board authorized $ 30 million in share repurchases during the next twelve months (the "2024 Share Repurchase Program").
+Added: On May 1, 2025, the Board authorized $ 15 million in share repurchases, which commenced on May 12, 2025, for the next twelve months (the "2025 Share Repurchase Program").
As of June 30, 2025, the aggregate amount available for repurchase under the 2025 Share Repurchase Program was $ 13.3 million.
3 unchanged sentences
The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the years ended June 30, 2025, 2024, and 2023:
+Added: Year ended June 30,
(000s) 2025 2024 2023
1 unchanged sentence
Effect of dilutive securities:
−Removed: Employee share-based compensation 81 199 227
+Added: Employee stock-based compensation 218 81 199
Warrant 652 470 495
+Added: TRG Conversion 177 — —
Total effects of dilutive securities 1,047 551 694
1 unchanged sentence
Shares considered anti-dilutive using the treasury method ( 209 ) ( 549 ) ( 367 )
+Added: Net income was adjusted as follows:
+Added: Year ended June 30,
+Added: ($000s) 2025 2024 2023
+Added: Net income $ 36,864 $ 33,655 $ 31,582
+Added: Convertible debt - interest expense, net of tax 178 — —
+Added: Numerator for diluted EPS $ 37,042 $ 33,655 $ 31,582
RELATED PARTY TRANSACTIONS
−Removed: The Company has agreements with multiple companies under the control of our controlling shareholder, TRGI, and with companies which have common directors with us, in the normal course of business.
−Removed: These transactions were executed on mutually agreed terms and include contact center services, back office support services and an office lease.
−Removed: During each of the fiscal years ended June 30, 2024, 2023, and 2022, the Company recognized revenue of $ 0.1 million with these related parties.
−Removed: As of June 30, 2024 and 2023, the Company had accounts receivable of $ 0.2 million and $ 0.0 million, respectively, other non-current assets of $ 1.1 million and $ 1.1 million, respectively, and accounts payable of $ 0.1 million and $ 2.3 million, respectively, with these related parties.
+Added: The Company has agreements with certain companies under the control of one of our shareholders, TRGI, in the normal course of business.
+Added: During each of the fiscal years ended June 30, 2025, 2024, and 2023, the Company recognized revenues of $ 0.1 million, respectively, with these related parties.
+Added: As of June 30, 2025 and 2024, the Company had accounts receivable of $ — million and $ 0.2 million, respectively, and accounts payable of $ — million and $ 0.1 million, respectively, with these related parties.
+Added: During the year ended June 30, 2025, we determined that the estimated fair value of our other non-current assets with a related party no longer exceeded their carrying value.
+Added: Accordingly, we recognized an impairment loss of $ 1.1 million during the year ended June 30, 2025, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income.
+Added: We did not have any other non-current assets with related parties as of June 30, 2025.
+Added: The balance of the other non-current assets was $ 1.1 million as of June 30, 2024.
+Added: TRGI Purchase Agreement
+Added: Refer to Note 14, "Stockholders' Equity" for further information on the TRGI Purchase Agreement, including details on the share repurchases from TRGI during the year ended June 30, 2025.
INVESTMENT IN JOINT VENTURE
1 unchanged sentence
The Company’s ownership interest is 47.5 % and is accounted for under the equity method.
−Removed: The Company’s investment of $ 0.4 million at each of June 30, 2024 and 2023, respectively, is included in other non-current assets in the consolidated balance sheets, while net earnings from the joint venture is included in selling, general, and administrative expense in the consolidated statements of comprehensive income.
+Added: The Company’s investment of $ 0.4 million at June 30, 2025 and 2024, respectively, is included in other non-current assets in the consolidated balance sheets, while net earnings from the joint venture is included in selling, general, and administrative expense in the consolidated statements of comprehensive income.
The table below presents our investment in the joint venture :
−Removed: ($000s) 2024 2023
−Removed: Opening balance $ 372 $ 382
+Added: ($000s) June 30, 2025 June 30, 2024
+Added: Beginning balance $ 415 $ 372
Dividends received ( 1,093 ) ( 1,013 )
1 unchanged sentence
Ending balance $ 438 $ 415
+Added: SEGMENT INFORMATION
+Added: An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment.
+Added: The Company’s CODM is the chief executive officer (“CEO”).
+Added: The Company has a single operating and reportable segment as the Company’s CODM is regularly provided with only consolidated financial results, to make decisions and assess performance.
+Added: The measure of segment assets is reported on the consolidated balance sheet as total assets.
+Added: The significant segment expenses for the Company are those on the consolidated statements of comprehensive income.
+Added: The Company’s measure of segment profitability is consolidated net income.
+Added: Consolidated net income is used to monitor performance against the annual budget and current forecasts, as well as make decisions on opening new sites or countries, acquiring businesses or making other strategic investments, repurchasing stock, or additional investments in or reductions of SGA.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
−Removed: Change In Registrant’s Certifying Accountant
−Removed: Disagreements With Registrant’s Certifying Accountant
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.