EXL Reports 2025 Second Quarter Results

2025 Second Quarter Revenue of $514.5 Million, up 14.7% year-over-year

Q2 Diluted EPS (GAAP) of $0.40, up 43.9% from $0.28 in Q2 of 2024

Q2 Adjusted Diluted EPS (Non-GAAP) (1) of $0.49, up 20.3% from $0.40 in Q2 of 2024

NEW YORK – July 29, 2025 (GLOBE NEWSWIRE) - ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended June 30, 2025.

Chairman and Chief Executive Officer Rohit Kapoor said, “I am pleased to report another strong quarter as we delivered revenue growth of 15% and increased our adjusted diluted EPS by 20%. Our sustained double-digit growth demonstrates the strength of our competitive position as a global data and AI company.  EXL’s recognized leadership in embedding AI in the workflow is resonating strongly with our clients and fueling our growth.”

Chief Financial Officer Maurizio Nicolelli said, “While we remain prudent in our outlook, our strong momentum gives us confidence to raise our revenue and adjusted diluted EPS guidance for the year. We now expect revenue to be in the range of $2.050 billion to $2.070 billion, up from our prior guidance of $2.035 billion to $2.065 billion. This represents 12% to 13% year-over-year growth on both a reported and constant currency basis. We now expect our adjusted diluted earnings per share for 2025 to be in the range of $1.86 to $1.90, up from our prior guidance of $1.83 to $1.89, representing a 13% to 15% increase over 2024, as we continue to accelerate our data and AI investments to generate future growth.”

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1. Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

Financial Highlights: Second Quarter 2025

• Revenue for the quarter ended June 30, 2025, increased to $514.5 million compared to $448.4 million for the second quarter of 2024, an increase of 14.7% on a reported basis and 14.6% on a constant currency basis. Revenue increased by 2.7% sequentially on a reported basis and 2.2% on a constant currency basis, from the first quarter of 2025.

(1) In the first quarter of 2025, the Company implemented operational and structural changes to accelerate the execution of its data and AI-led strategy. Under the new structure, beginning with the three months ended March 31, 2025, the Company reports its financial performance based on new segments presented in the table above. In conjunction with the new reporting structure, the Company has recast prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance.

• Operating income margin for the quarter ended June 30, 2025 was 15.8%, compared to 13.7% for the second quarter of 2024 and 15.7% for the first quarter of 2025. Adjusted operating income margin for the quarter ended June 30, 2025 was 19.6%, compared to 19.8% for the second quarter of 2024 and 20.1% for the first quarter of 2025.
• Diluted earnings per share for the quarter ended June 30, 2025 was $0.40, compared to $0.28 for the second quarter of 2024 and $0.40 for the first quarter of 2025. Adjusted diluted earnings per share for the quarter ended June 30, 2025 was $0.49, compared to $0.40 for the second quarter of 2024 and $0.48 for the first quarter of 2025.

Business Highlights: Second Quarter 2025

• Won 13 new clients in the second quarter of 2025
• Named a World Economic Forum (WEF) 2025 MINDS (Meaningful, Intelligent, Novel, Deployable Solutions) Winner for Code Harbor™, an AI-powered platform modernization solution. The award is part of the WEF AI Governance Alliance to identify AI applications that are delivering real impact at scale
• Named a Leader and Star Performer in the Everest Group Payment Integrity Solutions PEAK Matrix® Assessment 2025, based on EXL’s diverse, adaptable payment integrity solution engagement models, which are integrated with generative AI, natural language processing and machine learning as key drivers of their performance
• Recognized as a Microsoft Solutions Partner for Data and AI. This designation acknowledges EXL’s advanced capabilities in helping clients manage data across systems and build transformative analytics and AI solutions on Microsoft platforms
• Expanded partnership with Databricks to deploy a generative AI-enabled SAS to Databricks Data Intelligence Platform migration solution.  Leveraging EXL’s Code Harbor™, the solution helps enterprises streamline their transition from SAS to Databricks to support enhanced cloud modernization initiatives
• Achieved the Amazon Web Services (AWS) Generative AI Competency within the AWS Partner Network. The designation recognizes EXL as a trusted AWS Partner with deep domain expertise and proven success in delivering generative AI solutions, positioning the company among a select group of organizations recommended by AWS to customers seeking advanced generative AI capabilities
• EXL entered into an accelerated share repurchase agreement on July 29 to repurchase $125 million of the company’s common stock as part of its current $500 million stock repurchase program.

2025 Guidance

Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 86.0, U.K. pound sterling to U.S. dollar exchange rate of 1.35, U.S. dollar to the Philippine peso exchange rate of 56.5 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:

• Revenue of $2.050 billion to $2.070 billion, representing an increase of 12% to 13% on both a reported and constant currency basis from 2024.
• Adjusted diluted earnings per share of $1.86 to $1.90, representing an increase of 13% to 15% from 2024.

Conference Call 

ExlService Holdings, Inc. will host a conference call on Wednesday, July 30, 2025, at 10:00 A.M. ET to discuss the Company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 61,000 employees spanning six continents. For more information, visit  www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

For a full view of EXL’s financial tables, click here.