ExlService Holdings Earnings Call Transcripts
Fiscal Year 2026
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EXL is acquiring iMerit for $310 million to enhance AI model training, evaluation, and reinforcement learning capabilities, expanding into high-growth sectors and deepening expertise in regulated industries. The deal is expected to accelerate growth, with integration and synergies targeted within two years.
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Strong financial growth in 2025 and early 2026 was highlighted, with AI-led services now the majority of revenue. All shareholder proposals, including director elections and executive compensation, were approved. Strategic focus remains on scaling AI, innovation, and responsible growth.
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EXL is capitalizing on the rapid expansion of AI-driven services, with 60% of revenue now data and AI-led and over 30% outcome-based. Strategic investments in proprietary platforms, talent, and partnerships have driven sustained double-digit growth, margin expansion, and strong client retention, with guidance raised for 2026 and 2027.
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Q1 2026 revenue rose 13.8% year-over-year to $570.4M, with adjusted EPS up 20.2%. Data and AI-led revenues now comprise 60% of total, driving double-digit growth across all segments. Full-year guidance was raised for both revenue and EPS, reflecting strong demand and robust pipeline.
Fiscal Year 2025
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Q4 and full-year 2025 results exceeded expectations with double-digit revenue and EPS growth, driven by strong demand for data and AI-led services. 2026 guidance projects 9%-11% revenue growth and 10%-12% EPS growth, supported by robust client wins, high renewal rates, and a new $500M share repurchase program.
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The event highlighted a strong focus on integrating domain expertise, data management, and AI to drive growth, with data and AI now over half of revenue and expected to grow 15–20% annually. Margin expansion, targeted M&A, and active share buybacks remain strategic priorities.
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Q3 2025 saw 12% revenue growth and 11% higher Adjusted EPS, with data and AI-led revenue now 56% of total and up 18% year-over-year. Raised 2025 guidance to 13% revenue and 14–16% EPS growth, driven by strong demand, new AI solutions, and robust client expansion.
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AI adoption is driving robust growth, with 54% of revenue now from data and AI solutions. The company is shifting to outcome-based pricing, expanding client workflows, and maintaining high revenue visibility. Margins and free cash flow are rising, supporting targeted M&A and share buybacks.
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Q2 2025 revenue rose 14.7% year-over-year to $514.5 million, with adjusted EPS up 20.3%. Data and AI-led revenue now makes up 54% of total revenue, driving strong growth across all segments. Full-year guidance was raised, reflecting confidence in sustained double-digit growth.
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The company has evolved to focus on data and AI, now comprising over half of its revenue and driving higher value for clients. Strong revenue growth is expected through 2026, supported by increased R&D, margin expansion, and a client-centric operating model. AI solutions and healthcare payment integrity are key growth drivers.
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EXL is leveraging its deep domain expertise, proprietary data, and AI capabilities to drive integrated, scalable solutions across insurance, healthcare, and banking. AI-led revenue now exceeds 50%, with strong financial growth, high client satisfaction, and a robust pipeline supporting double-digit growth targets.
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Q1 2025 saw 15% revenue growth and 27% higher adjusted EPS, driven by strong data and AI-led solutions now making up 53% of revenue. Raised 2025 guidance reflects robust demand, resilient business model, and high revenue visibility, with continued investment in AI capabilities.
Fiscal Year 2024
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Q4 2024 saw 16% revenue growth and 26% adjusted EPS growth, driven by strong performance in Analytics and Digital Operations. Data and AI comprised 53% of annual revenue, and 2025 guidance projects 10%-12% revenue growth and 11%-14% adjusted EPS growth.
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The event highlighted a strategic shift toward data, AI, and GenAI, driving double-digit growth and higher margins. Investments in AI, data management, and industry-specific LLMs are expanding client value and revenue per headcount, with a focus on maintaining leadership through M&A and innovation.
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Q3 2024 saw 15% revenue growth and 16% higher adjusted EPS, driven by strong analytics and digital operations. Full-year guidance was raised, with continued double-digit growth expected. Investments in AI, talent, and M&A support ongoing momentum.
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The company is leveraging data analytics and AI to drive double-digit growth, with proprietary solutions and disciplined investments fueling expansion. Demand remains strong across core verticals, and new commercial models and talent strategies are being developed to support future growth.
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Q2 2024 saw 11% revenue and adjusted EPS growth, driven by strong analytics and digital operations, the ITI Data acquisition, and a strategic NVIDIA partnership. Guidance for 2024 was raised, with robust cash flow, aggressive share repurchases, and a healthy sales pipeline.
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Revenue is well balanced between digital operations and data analytics, with strong growth in payment integrity and data management, but cyclical headwinds in marketing analytics and insurance. AI and data capabilities are driving larger deals, higher margins, and deeper client relationships, while free cash flow is expected to recover as working capital pressures ease.