Revenue Growth - Total operating revenues increased by $18.6 million or 14% to $147.2 million for the three months ended September 30, 2019, compared to $128.6 million in the same period of 2018[209]. - Total operating revenues increased by $72.9 million or 20% to $434.4 million for the nine months ended September 30, 2019, compared to $361.5 million in the same period in 2018, driven by growth in the EbixCash segment and recent acquisitions[225]. - Revenue from EbixCash Exchanges for the three months ended September 30, 2019, was $82.1 million, compared to $60.3 million in the same period of 2018, representing a year-over-year increase of 36%[206]. - International revenue accounted for 69.4% of total revenue for the three months ended September 30, 2019, up from 62.4% in the same period of 2018[204]. - International revenue accounted for 68.7% of total revenue for the nine months ended September 30, 2019, up from 59.4% in the same period in 2018[225]. Expenses - Costs of services provided increased by $12.2 million or 28% to $55.2 million in the third quarter of 2019 compared to $43.0 million in the third quarter of 2018[214]. - Costs of services provided increased by $25.9 million or 21% to $152.1 million during the nine months ended September 30, 2019, primarily due to additional personnel and consulting costs related to acquisitions in India[229]. - General and administrative expenses rose by $18.7 million or 66% to $46.9 million in the third quarter of 2019, primarily due to a $12.1 million reserve against receivables from a public sector entity in India[218]. - General and administrative expenses increased by $26.8 million or 36% to $101.2 million during the nine months ended September 30, 2019, including a $12.1 million bad debt reserve related to receivables from BSNL in India[233]. - Product development expenses increased by $235 thousand or 2% to $11.2 million during the third quarter of 2019 compared to $11.0 million in the same period of 2018[216]. - Product development expenses rose by $5.8 million or 21% to $33.9 million during the nine months ended September 30, 2019, mainly due to costs associated with the operations of recent acquisitions[230]. - Amortization and depreciation expenses increased by $1.1 million or 44% to $3.6 million in the third quarter of 2019 compared to $2.5 million in the same period of 2018[219]. Financial Position - Cash and cash equivalents decreased to $124.2 million at September 30, 2019, from $147.8 million at December 31, 2018[242]. - The current ratio increased to 1.50 at September 30, 2019, from 1.35 at December 31, 2018, indicating improved liquidity[244]. - As of September 30, 2019, the Company had $721.0 million of outstanding debt obligations, including a $279.9 million term loan and a $438.0 million balance on its commercial banking revolving line of credit[317]. - The Company's revolving line of credit interest rate stood at 4.81% as of September 30, 2019, exposing it to potential increases in interest expense[317]. - The term loan balance was $279.9 million, with $18.8 million due within the next twelve months, and an interest rate of 4.81%[278]. Acquisitions and Investments - The company completed three business acquisitions during the nine months ended September 30, 2019, including the acquisition of WallStreet Canada for approximately $2.1 million[246]. - The total cash used for investing activities was $93.3 million for the nine months ended September 30, 2019, primarily for acquisitions including $77.4 million for Weizmann and $9.8 million for Zillious[269]. - Ebix completed thirteen business acquisitions during the twelve months ended December 31, 2018, including a 74.84% stake in Weizmann for $63.1 million and a public offer for the remaining 25.16% shares for approximately $21.1 million[251]. - The Company acquired assets of Pearl for $3.4 million and Lawson for $2.7 million, integrating them into Ebix Travels' operations[252][253]. - The acquisition of Centrum for approximately $179.5 million was integrated into EbixCash, enhancing its foreign exchange and remittance services[260]. Legal Matters - The Company is involved in various legal claims, but management believes these will not have a material adverse effect on its consolidated financial position[325]. - The Delaware Court of Chancery approved the Litigation Settlement on April 5, 2019, awarding plaintiffs' counsel $19.65 million in attorneys' fees and expenses, payable by the Company within 20 days[324]. - The Settlement Agreement resolves all claims asserted or that could have been asserted in the Litigation, with no admission of wrongdoing or liability by the Company[324]. - The Settlement was fully paid on May 2, 2019[324]. - Management believes that the outcome of various other claims and legal actions will not materially adversely affect the Company's consolidated financial position, results of operations, or liquidity[325]. Tax and Interest - The company recorded a net income tax benefit of $297 thousand (0.44%) during the nine months ended September 30, 2019, with an effective tax rate expected to be in the range of 6% to 7% for the full year[238]. - Interest expense increased by $14.5 million or 80% to $32.6 million during the nine months ended September 30, 2019, due to a 41% increase in the average outstanding balance on commercial banking credit facilities[236]. - The company reported a decrease in interest income of $4 thousand or 4% to $99 thousand in the third quarter of 2019 compared to $103 thousand in the same period of 2018[220]. Currency and Foreign Exchange - During the nine months ended September 30, 2019, the net change in the cumulative foreign currency translation account resulted in unrealized losses of $10.9 million, compared to $61.8 million for the same period in 2018[316]. - A hypothetical 20% adverse change in foreign currency exchange rates could have resulted in a reduction to pre-tax income of approximately $12.4 million and $11.1 million for the nine months ended September 30, 2019 and 2018, respectively[316]. - A hypothetical 30 basis point increase in the LIBOR rate would have resulted in a reduction to pre-tax income of approximately $4.5 million and $2.5 million for the nine months ended September 30, 2019 and 2018, respectively[317]. - A hypothetical 20 basis point decrease in interest rates earned on deposited funds would have resulted in a reduction to pre-tax income of approximately $227 thousand and $342 thousand for the nine months ended September 30, 2019 and 2018, respectively[317]. Operational Insights - Revenue is primarily derived from software subscription and transaction fees, software license fees, and professional service fees[285]. - EbixCash revenues are mainly from money transfer services, recognized at a point in time, with significant variability based on transaction factors[288]. - Insurance Exchanges revenues come from software licensing and related services, with contracts often including setup and customization services[297]. - Subscription services revenues are recognized ratably over the contract term, typically for an initial three-year period with automatic renewals[301]. - Transaction revenue is based on fees applied to the volume of transactions processed through SaaS platforms, recognized when invoiced[302]. - The company does not engage in off-balance sheet financing arrangements[280]. - Management analyzes accounts receivable and historical bad debts to evaluate the adequacy of the allowance for doubtful accounts[307]. - The Company had no impairment of its reporting unit goodwill balances for the years ended December 31, 2018 and 2017[310]. - The Company maintains effective disclosure controls and procedures, with no changes that materially affected internal control over financial reporting during the quarter ended September 30, 2019[322].

Revenue Growth - Total operating revenues increased by $19.6 million or 16% to $144.3 million for the three months ended June 30, 2019, compared to $124.6 million in the same period of 2018[198]. - Total operating revenues increased by $54.3 million or 23% to $287.2 million for the six months ended June 30, 2019, compared to $232.9 million in the same period in 2018[215]. - International revenue accounted for 68.8% of total revenue for the three months ended June 30, 2019, up from 61.2% in the same period of 2018[196]. - International revenue accounted for 68.3% of total revenue for the six months ended June 30, 2019, up from 57.8% in 2018[215]. - EbixCash segment growth and recent acquisitions contributed to revenue increase, despite declines in U.S. consulting and e-governance service contracts[198]. Expenses - Costs of services provided increased by $7.4 million or 17% to $51.0 million in Q2 2019, primarily due to additional personnel and consulting costs from 2018 acquisitions[205]. - Costs of services provided increased by $13.7 million or 17% to $96.9 million during the six months ended June 30, 2019, primarily due to additional personnel and consulting costs[221]. - Product development expenses rose by $2.7 million or 31% to $11.4 million in Q2 2019, driven by costs associated with recent acquisitions[206]. - Product development expenses rose by $5.5 million or 32% to $22.6 million during the six months ended June 30, 2019, driven by costs associated with recent acquisitions[222]. - General and administrative expenses increased by $6.1 million or 23% to $32.9 million in Q2 2019, mainly due to costs from 2018 acquisitions[208]. - Amortization and depreciation expenses increased by $749 thousand or 30% to $3.3 million in Q2 2019, reflecting costs from 2018 acquisitions[210]. Income and Tax - Interest income increased by $44 thousand or 52% to $129 thousand in Q2 2019, attributed to higher balances in interest-bearing accounts[211]. - Interest expense increased by $11.0 million or 104% to $21.6 million during the six months ended June 30, 2019, due to a 36% increase in the average outstanding balance on commercial banking credit facilities[228]. - The company recorded a net income tax expense of $80 thousand (0.15%) for the six months ended June 30, 2019, with an effective tax rate of 7.65% excluding discrete items[230]. Acquisitions - The company completed two business acquisitions in the first half of 2019, acquiring Essel Forex for approximately $7.9 million and an 80% stake in Zillious for $10.1 million[240][241]. - Ebix acquired the assets of Pearl for $3.4 million, integrating it into Ebix Travels, which has resulted in operational synergies[244]. - Ebix acquired Lawson for $2.7 million, enhancing operational synergies and expanding its footprint in India[245]. - AHA Taxis was acquired for $310 thousand, focusing on corporate and consumer inter-city travel with a network of thousands of registered taxis[246]. - The acquisition of Centrum for approximately $179.5 million was aimed at expanding Ebix's financial services in foreign exchange and remittance markets[253]. Cash Flow and Financial Position - Net cash provided by operating activities was $38.2 million for the six months ended June 30, 2019, with a net income of $54.6 million[258]. - Net cash used for investing activities was $100.8 million for the six months ended June 30, 2019, primarily for acquisitions[260]. - Net cash provided by financing activities was $36.1 million for the six months ended June 30, 2019, including $41.6 million from the EbixCash working capital facility[263]. - Cash and cash equivalents decreased to $102.2 million at June 30, 2019, down from $147.8 million at December 31, 2018[233]. - The current ratio slightly increased to 1.36 at June 30, 2019, while working capital decreased to $97.7 million[237]. - The company's days sales outstanding (DSO) in accounts receivable was 111 days at June 30, 2019, an increase of 8 days from the previous quarter[237]. Debt and Liabilities - As of June 30, 2019, the outstanding balance on the revolving line of credit was $438.0 million, with an interest rate of 5.00%[266]. - The company had $724.9 million of outstanding debt obligations as of June 30, 2019, including a $283.7 million term loan and a $438.0 million balance on its commercial banking revolving line of credit[285]. - The total of contingent liabilities as of June 30, 2019, was $10.8 million, with $9.5 million reported in long-term liabilities[257]. - As of June 30, 2019, the total contingent liabilities related to earn-out obligations from business acquisitions was $10.8 million[278]. - During the six months ended June 30, 2019, contingent accrued earn-out business acquisition consideration liabilities were reduced by $17.1 million due to re-measurements[278]. Legal Matters - The Delaware Court awarded $19.65 million in attorneys' fees and expenses to plaintiffs' counsel, payable by the Company within 20 days following the approval of the Litigation Settlement[304]. - The Company is involved in various other claims and legal actions arising in the ordinary course of business, but management believes these will not materially affect its consolidated financial position[308]. - The Litigation Settlement resolves all claims that were asserted or could have been asserted in the Litigation, with no admission of wrongdoing or liability by the Company[307]. - The Company has committed to governance measures as part of the Litigation Settlement, effective upon final approval[305]. - The Settlement includes the adoption of an Amended Stock Appreciation Right Award Agreement (Amended SAR Agreement) and certain governance measures effective upon the final resolution of any appeals[305]. Management and Governance - The Amended SAR Agreement stipulates that Mr. Raina will continue as CEO for at least two years following the Settlement's Final Approval[302]. - The Amended SAR Agreement allows for the accrual of 1,000,000 Stock Appreciation Rights (SARs) upon an Acquisition Event occurring more than 180 days after Mr. Raina's involuntary termination, increasing by 750,000 SARs each anniversary thereafter[302]. - The Company will not make tax gross-up payments for excise taxes related to payments made in connection with a change in control of the Company under the Amended SAR Agreement[302]. Foreign Currency Exposure - The Company has operations in multiple countries, including Australia, India, and the United Kingdom, which exposes it to foreign currency exchange rate risks[284]. - The net change in the cumulative foreign currency translation account for the six months ended June 30, 2019 was an unrealized gain of $7.9 million[284]. - The Company reported unrealized gains of $7.9 million in foreign currency translation for the six months ended June 30, 2019, compared to losses of $(30.9) million for the same period in 2018[284]. - The Company is exposed to a potential reduction in pre-tax income of approximately $11.0 million due to adverse changes in foreign currency exchange rates of 20%[284]. - The company applies FASB accounting guidance on accounting for uncertainty in income tax positions, which prescribes the minimum recognition threshold for tax positions[280].

Revenue Growth - Total operating revenues increased by $34.7 million or 32% to $142.9 million for the three months ended March 31, 2019, compared to $108.2 million in the same period of 2018[196]. - International revenue accounted for 67.8% of total revenue for Q1 2019, up from 53.9% in Q1 2018[194]. - EbixCash segment growth and recent acquisitions contributed significantly to revenue increase, despite a $5.0 million adverse impact from foreign currency fluctuations[196]. Expense Increases - Costs of services provided rose by $6.3 million or 16% to $45.9 million in Q1 2019, primarily due to increased personnel and consulting costs related to acquisitions[203]. - Product development expenses increased by $2.8 million or 33% to $11.2 million in Q1 2019, driven by costs from recent acquisitions[204]. - Sales and marketing expenses surged by $2.1 million or 53% to $6.1 million in Q1 2019, mainly due to costs associated with India operations and acquisitions[205]. - General and administrative expenses rose by $1.9 million or 10% to $21.4 million in Q1 2019, influenced by costs from 2018 acquisitions[206]. - Amortization and depreciation expenses increased by $1.3 million or 45% to $4.1 million in Q1 2019, primarily due to costs from recent acquisitions[208]. Income and Tax - Interest income increased by $229 thousand or 189% to $350 thousand in Q1 2019, attributed to higher deposits in interest-bearing accounts[209]. - The company recorded a net income tax benefit of $1.08 million (4.52%) for Q1 2019, with an effective tax rate expected to be in the range of 8% to 9% for the full year[212]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $77.0 million as of March 31, 2019, down from $147.8 million at December 31, 2018[215]. - The current ratio increased to 1.46 at March 31, 2019, up from 1.35 at December 31, 2018, with working capital slightly increasing to $110.4 million[219]. - Net cash provided by operating activities was $38.5 million for Q1 2019, with primary components including net income of $25.7 million and $21.6 million in working capital requirements[240]. Acquisitions - The company completed two business acquisitions in Q1 2019, acquiring Essel Forex for approximately $7.9 million and an 80% stake in Zillious for $10.1 million[222][223]. - Total contingent liabilities related to business acquisitions decreased to $12.5 million as of March 31, 2019, down from $25.0 million at December 31, 2018[239]. Accounts Receivable and Working Capital - Days sales outstanding (DSO) in accounts receivable improved to 103 days at March 31, 2019, down from 116 days at December 31, 2018[219]. - The company intends to utilize cash flows from operations and its commercial bank credit facility to fund capital expenditures and strategic acquisitions in the insurance services sector[213]. Debt Obligations - As of March 31, 2019, the Company had $728.7 million in outstanding debt obligations, including a $287.5 million term loan and a $438.0 million balance on its commercial banking revolving line of credit[269]. - The term loan balance as of March 31, 2019, was $287.5 million, with $15.1 million due within the next twelve months[249]. - The Company's revolving line of credit interest rate was 5.00% as of March 31, 2019, with exposure to a potential $1.5 million reduction in pre-tax income from a hypothetical 30 basis point increase in LIBOR[269]. Legal Proceedings - The Company faced legal proceedings related to a proposed merger, with multiple class action complaints filed against it and its board of directors[275]. - The litigation includes claims of breach of fiduciary duty and challenges to the validity of certain agreements and corporate actions[278]. - The Delaware Court of Chancery approved the Litigation Settlement, awarding $19.65 million in attorneys' fees and expenses to plaintiffs' counsel, payable by the Company within 20 days[290]. - The Settlement contains no admission of wrongdoing or liability by the Company[292]. Foreign Currency Exposure - The net change in cumulative foreign currency translation for Q1 2019 was an unrealized gain of $3.5 million, compared to a loss of $(4.8) million in Q1 2018[268]. - A hypothetical 20% adverse change in foreign currency exchange rates could have reduced pre-tax income by approximately $6.9 million in Q1 2019[268]. - The Company is exposed to a potential 20% adverse change in foreign currency exchange rates, which could reduce pre-tax income by approximately $6.9 million for the three months ended March 31, 2019[268]. Disclosure Controls - The Company maintains effective disclosure controls and procedures, ensuring accurate reporting in compliance with SEC rules as of March 31, 2019[274]. - The Company has ongoing evaluations to improve the effectiveness of its disclosure controls and procedures[273].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K þ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-15946 Ebix, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 77-0021975 (I.R.S. Employer Identificati ...