# ExlService Holdings, Inc. (EXLS) Q2 2025 Financial Results Summary
*Release Date: July 29, 2025*
ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, announced its financial results for the second quarter ended June 30, 2025. The key highlights from the report include robust revenue growth and significant increases in earnings per share.
### Financial Highlights:
– **Revenue**:
– Q2 2025 revenue: **$514.5 million**
– Year-over-year growth of **14.7%** from Q2 2024 revenue of **$448.4 million**
– Sequential growth of **2.7%** from Q1 2025 revenue of **$501 million**
– Constant currency revenue growth of **14.6%** year-over-year and **2.2%** sequentially
– **Earnings Per Share (EPS)**:
– Q2 2025 diluted GAAP EPS: **$0.40**, up **43.9%** from **$0.28** in Q2 2024
– Q2 2025 adjusted diluted EPS (Non-GAAP): **$0.49**, up **20.3%** from **$0.40** in Q2 2024
– **Operating Metrics**:
– Operating income margin for Q2 2025: **15.8%**, an increase from **13.7%** in Q2 2024
– Adjusted operating income margin: **19.6%**, down slightly from **19.8%** in Q2 2024
– Gross margin for Q2 2025: **37.7%**, up from **37.1%** in Q2 2024
### Segment Performance:
– **Insurance**: Revenue of **$172.2 million**, up from **$158.5 million** (Q2 2024), with a gross margin of **34.8%**
– **Healthcare and Life Sciences**: Revenue of **$129.5 million**, up from **$106.1 million**, with a gross margin of **43.5%**
– **Banking, Capital Markets and Diversified Industries**: Revenue of **$121.1 million**, up from **$104.6 million**, with a gross margin of **37.8%**
– **International Growth Markets**: Revenue of **$91.7 million**, up from **$79.2 million**, with a gross margin of **35.1%**
### Business Development:
– **New Clients**: Acquired **13 new clients** in Q2 2025
– **Awards**:
– Recognized as a 2025 World Economic Forum MINDS Winner for the AI-powered platform modernization solution, Code Harbor™
– Designated as a Leader and Star Performer in the Everest Group Payment Integrity Solutions PEAK Matrix Assessment 2025
– Achieved **Microsoft Solutions Partner for Data and AI**
– **Partnerships**: Expanded collaboration with Databricks for AI solution deployment and achieved **AWS Generative AI Competency**.
### Share Repurchase:
– Executed an accelerated share repurchase agreement to repurchase **$125 million** of the company’s common stock as part of its **$500 million** stock repurchase program.
### 2025 Outlook and Guidance:
– **Revenue Guidance**:
– Expectation to be between **$2.050 billion and $2.070 billion**, representing **12% to 13%** growth from 2024
– **Adjusted Diluted EPS Guidance**:
– Projected in the range of **$1.86 to $1.90**, indicating a **13% to 15%** increase year-over-year.
### Conference Call Information:
– ExlService Holdings, Inc. will host a conference call on **July 30, 2025**, at **10:00 A.M. ET** to discuss the quarterly operating and financial results, which will be available live on their investor relations website.
### Conclusion:
ExlsService Holdings, Inc. has reported strong financial performance in Q2 2025, primarily driven by significant revenue growth and improved profitability metrics, alongside a strategic focus on innovation and AI integration. The company has also initiated a substantial share repurchase program, reflecting confidence in its ongoing performance and market position.
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenues, net | $514,460 | $448,366 | $1,015,479 | $884,873 |
| Cost of revenues(1) | 320,272 | 282,106 | 627,977 | 555,530 |
| Gross profit(1) | 194,188 | 166,260 | 387,502 | 329,343 |
| Operating expenses: | ||||
| General and administrative expenses | 59,549 | 56,457 | 118,966 | 109,700 |
| Selling and marketing expenses | 39,446 | 35,444 | 81,371 | 71,414 |
| Depreciation and amortization expense | 14,055 | 12,910 | 27,612 | 25,256 |
| Total operating expenses | 113,050 | 104,811 | 227,949 | 206,370 |
| Income from operations | 81,138 | 61,449 | 159,553 | 122,973 |
| Foreign exchange gain, net | 2,211 | 36 | 3,403 | 395 |
| Interest expense | -4,282 | -5,328 | -8,426 | -8,619 |
| Other income, net | 5,671 | 3,550 | 10,374 | 7,502 |
| Income before income tax expense and earnings from equity affiliates | 84,738 | 59,707 | 164,904 | 122,251 |
| Income tax expense | 18,546 | 13,873 | 32,042 | 27,626 |
| Income before earnings from equity affiliates | 66,192 | 45,834 | 132,862 | 94,625 |
| Loss from equity-method investment | -141 | -9 | -250 | -37 |
| Net income | $66,051 | $45,825 | $132,612 | $94,588 |
| Earnings per share: | ||||
| Basic | $0.41 | $0.28 | $0.82 | $0.58 |
| Diluted | $0.40 | $0.28 | $0.81 | $0.57 |
| Weighted average number of shares used in computing earnings per share: | ||||
| Basic | 162,925,484 | 162,794,138 | 162,709,034 | 163,938,263 |
| Diluted | 164,193,258 | 163,961,754 | 164,376,498 | 165,344,304 |
(1) Exclusive of depreciation and amortization expense.
| As of | ||
|---|---|---|
| June 30, 2025 | December 31, 2024 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $149,134 | $153,355 |
| Short-term investments | 204,160 | 187,223 |
| Restricted cash | 11,503 | 9,972 |
| Accounts receivable, net | 345,470 | 304,322 |
| Other current assets | 148,049 | 140,317 |
| Total current assets | 858,316 | 795,189 |
| Property and equipment, net | 114,103 | 101,837 |
| Operating lease right-of-use assets | 73,083 | 68,784 |
| Restricted cash | 9,888 | 8,071 |
| Deferred tax assets, net | 117,208 | 104,747 |
| Goodwill | 420,573 | 420,387 |
| Other intangible assets, net | 42,825 | 49,331 |
| Long-term investments | 7,516 | 13,972 |
| Other assets | 64,991 | 56,085 |
| Total assets | $1,708,503 | $1,618,403 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $5,971 | $5,884 |
| Current portion of long-term borrowings | 4,886 | 4,886 |
| Deferred revenue | 21,989 | 19,264 |
| Accrued employee costs | 99,535 | 129,994 |
| Accrued expenses and other current liabilities | 121,548 | 113,597 |
| Current portion of operating lease liabilities | 18,374 | 16,491 |
| Total current liabilities | 272,303 | 290,116 |
| Long-term borrowings, less current portion | 255,155 | 283,598 |
| Operating lease liabilities, less current portion | 62,402 | 59,851 |
| Deferred tax liabilities, net | 2,216 | 1,403 |
| Other non-current liabilities | 55,477 | 53,573 |
| Total liabilities | 647,553 | 688,541 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued | — | — |
| Common stock, $0.001 par value; 400,000,000 shares authorized, 207,810,635 shares issued and 161,829,331 shares outstanding as of June 30, 2025 and 206,510,587 shares issued and 161,801,212 shares outstanding as of December 31, 2024 | 207 | 206 |
| Additional paid-in capital | 625,984 | 588,583 |
| Retained earnings | 1,414,572 | 1,281,960 |
| Accumulated other comprehensive loss | -134,434 | -154,722 |
| Total including shares held in treasury | 1,906,329 | 1,716,027 |
| Less: 45,981,304 shares as of June 30, 2025 and 44,709,375 shares as of December 31, 2024, held in treasury, at cost | -845,379 | -786,165 |
| Total stockholders’ equity | 1,060,950 | 929,862 |
| Total liabilities and stockholders’ equity | $1,708,503 | $1,618,403 |
