Financial Data and Key Metrics Changes - The company reported revenue of $530 million for Q3 2025, representing a 12% year-over-year increase and an adjusted EPS of $0.48, up 11% year-over-year [4][21] - Adjusted EPS for the quarter was $0.48, reflecting a 10.8% year-over-year increase [24] - Revenue for the first nine months of 2025 was $1.55 billion, up 14% year-over-year on a constant currency basis [25] Business Line Data and Key Metrics Changes - Data and AI-led revenue grew 18% year-over-year, accounting for 56% of total revenue [4][6] - Digital operations revenue increased by 6% year-over-year, with some revenue shifting to the data and AI-led category [6] - The insurance segment grew 9% year-over-year, contributing a third of total revenue [6] - Healthcare and life sciences segment grew 22% year-over-year, driven by demand for data and AI solutions [6][22] - Banking, capital markets, and diversified industries grew 12% year-over-year, representing nearly a quarter of total revenue [7][22] Market Data and Key Metrics Changes - International growth markets segment generated revenue of $92.8 million, up 8.4% year-over-year [23] - The company noted a positive demand environment and an expanding sales pipeline for data and AI-led opportunities [8][9] Company Strategy and Development Direction - The company is focused on embedding AI into client workflows and has launched EXLdata.ai to help clients make their data AI-ready [12][13] - The strategy includes expanding capabilities in data and AI, with a strong emphasis on client engagement and innovation [11][56] - The company aims to maintain double-digit growth momentum into 2026, supported by a healthy new business pipeline [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained double-digit growth due to the increasing demand for AI-driven solutions [36][40] - The company is raising its revenue and EPS guidance for the full year based on strong performance and visibility [27][28] - Management highlighted the importance of transforming client business models and expanding total addressable markets through AI adoption [9][36] Other Important Information - More than 75% of the company's revenue is recurring or annuity, providing stability and predictability [11] - The company has received several industry recognitions for its AI services and solutions leadership [17][18] Q&A Session Summary Question: Change in overall demand environment - Management characterized the overall demand as very strong, with an expanding total addressable market for services and solutions [30][32] Question: Expectations for digital operations growth - Management indicated that digital operations growth is impacted by revenue shifting to data and AI-led categories, with a current growth rate of 6% [46][47] Question: Client relationship management changes - The company is enhancing client engagement by training teams to discuss complex technologies and expanding conversations to include higher-level executives [52][54] Question: Outlook for healthcare segment growth - Management believes the healthcare business has significant growth potential due to the data-rich and fragmented nature of the market [62][64] Question: Margin expectations for next year - Management expects more stable margin growth in 2026, with an adjusted margin improvement of 10 to 20 basis points per year [67][68] Question: Landscape for EXLdata.ai product - Management noted that while other companies are developing similar solutions, EXLdata.ai differentiates itself by using AI to prepare data for AI readiness [71][72] Question: International segment growth acceleration - The company is investing in marketing and talent to accelerate growth in international markets [75] Question: Requirements for deploying enterprise AI - Management discussed two engagement motions: standalone capabilities for data readiness and integrated solutions for embedding AI into workflows [78][80]

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Safe harbor Forward-looking statements This presentation 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 ...

Core Insights - ExlService Holdings (EXLS) reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.44 per share a year ago, resulting in an earnings surprise of +4.35% [1][2] - The company achieved revenues of $529.59 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.55% and up from $472.07 million year-over-year [2] - ExlService Holdings has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The future performance of ExlService Holdings' stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $528.51 million, and for the current fiscal year, it is $1.90 on revenues of $2.07 billion [7] Industry Context - The Computers - IT Services industry, to which ExlService Holdings belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Performance - Total revenues for Q3 2025 reached $529.6 million, a 12.2% increase from $472.1 million in Q3 2024[13] - Gross profit for Q3 2025 was $203.9 million, up 14.5% from $178.3 million in Q3 2024[13] - Net income for Q3 2025 was $58.2 million, compared to $53.0 million in Q3 2024, reflecting a 9.5% increase[13] - Basic earnings per share for Q3 2025 were $0.36, an increase from $0.33 in Q3 2024[13] - Total revenues for the nine months ended September 30, 2025, reached $1,545.06 million, a 13.9% increase from $1,356.94 million in the same period of 2024[55] - Gross profit for the nine months ended September 30, 2025, was $591.43 million, compared to $507.61 million for the same period in 2024, reflecting a 16.5% increase[55] - Net income for the nine months ended September 30, 2025, was $190,773,000, an increase from $147,625,000 in the same period of 2024, representing a growth of 29.2%[26] - For the three months ended September 30, 2025, net income was $58,161,000, compared to $53,037,000 for the same period in 2024, representing an increase of 4.0%[77] Assets and Liabilities - Total assets as of September 30, 2025, were $1.73 billion, up from $1.62 billion as of December 31, 2024[11] - Total liabilities increased to $781.2 million as of September 30, 2025, compared to $688.5 million at the end of 2024[11] - Total stockholders' equity increased to $952.4 million as of September 30, 2025, from $929.9 million at the end of 2024[11] - The company reported accounts receivable, net of allowance for expected credit losses, of $351.426 million as of September 30, 2025, compared to $304.322 million as of December 31, 2024[72] - Contract assets decreased to $31.148 million as of September 30, 2025, from $39.700 million as of December 31, 2024[67] - Deferred revenue as of September 30, 2025, was $12.239 million, down from $15.484 million as of December 31, 2024[67] Cash Flow and Investments - Cash and cash equivalents rose to $160.3 million as of September 30, 2025, from $153.4 million at the end of 2024[11] - Total cash provided by operating activities for the nine months ended September 30, 2025, was $233,336,000, compared to $163,179,000 for the same period in 2024, indicating a 43% increase[26] - The company experienced a net cash used for investing activities of $82,609,000 for the nine months ended September 30, 2025, compared to $94,475,000 in 2024, indicating a decrease of 12.6%[26] - The company reported a closing balance of contingent consideration at $2,700,000 as of September 30, 2025, unchanged from the previous quarter, while it was $7,700,000 in Q3 2024[115] Operating Expenses - Operating expenses for Q3 2025 were $127.8 million, a 17.4% increase from $108.9 million in Q3 2024[13] - Employee costs for Q3 2025 totaled $274,444,000, compared to $242,200,000 in Q3 2024, showing an increase of 13.3%[49][54] - Employee costs for the nine months ended September 30, 2025, totaled $805.16 million, up from $701.42 million in 2024, reflecting a 14.8% increase[55] Segment Performance - Revenues from the Healthcare and Life Sciences segment were $135,271,000 in Q3 2025, up from $111,197,000 in Q3 2024, marking a 21.6% increase[49][54] - Data and AI-led revenues for the nine months ended September 30, 2025, amounted to $845.169 million, an increase from $722.743 million in 2024, marking a 17.0% rise[61] - North America generated $1,275.036 million in revenues for the nine months ended September 30, 2025, up from $1,117.238 million in 2024, representing a 14.2% growth[65] Shareholder Activities - The Company repurchased 3,074,076 shares for a total consideration of $133,467, with a weighted average purchase price of $43.42 during the three months ended September 30, 2025[145] - For the nine months ended September 30, 2025, the Company repurchased 4,155,289 shares for a total consideration of $183,278, with a weighted average purchase price of $44.11[145] - The Company entered into the 2025 ASR Agreement with Citibank to repurchase shares for an aggregate purchase price of $125,000, receiving an initial delivery of 2,302,556 shares at an initial price of $43.43 per share[142] Tax and Compliance - The effective tax rate decreased from 22.6% to 22.1% for the three months ended September 30, 2025, compared to the same period in 2024[162] - The Company recorded an income tax expense of $16,456 for the three months ended September 30, 2025, up from $15,460 in 2024, primarily due to higher profit[162] - The Company believes that the outcomes of pending litigation matters will not have a material adverse effect on its consolidated financial condition, results of operations, or cash flows[198] Operational Changes - The new segment structure includes Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets, aimed at enhancing client value[46][47] - The Company has implemented operational changes to accelerate its data and AI strategy, aligning financial performance reporting with new segments[33][42] - The Company has made payments and/or provided bank guarantees totaling $7,757 and $7,506 against these demands as of September 30, 2025, and December 31, 2024, respectively[191]

Financial Performance - Q3 2025 revenue reached $529.6 million, a 12.2% increase year-over-year from $472.1 million in Q3 2024[1][4] - Q3 2025 diluted EPS (GAAP) was $0.36, up 10.7% from $0.33 in Q3 2024, while adjusted diluted EPS (Non-GAAP) was $0.48, up 10.8% from $0.44 in Q3 2024[1][4] - Full-year 2025 revenue guidance is projected between $2.07 billion and $2.08 billion, reflecting a 13% year-over-year growth[2][9] - Adjusted diluted EPS guidance for 2025 is set between $1.88 and $1.92, representing a 14% to 16% increase over 2024[2][9] - Operating income margin for Q3 2025 was 14.4%, compared to 14.7% in Q3 2024 and 15.8% in Q2 2025[4] - The company reported a gross margin of 38.5% for Q3 2025, compared to 37.8% in Q3 2024[4] - Adjusted operating income for Q3 2025 was $102,623, up from $94,086 in Q3 2024, marking a growth of 9.1%[23] - Adjusted EBITDA for Q3 2025 reached $114,441, compared to $104,436 in Q3 2024, an increase of 9.8%[23] - Adjusted diluted earnings per share for Q3 2025 was $0.48, up from $0.44 in Q3 2024, representing a growth of 9.1%[25] - Net income (GAAP) for Q3 2025 was $58,161, compared to $53,037 in Q3 2024, an increase of 9.9%[23] Client Acquisition and Market Demand - The company won 21 new clients in Q3 2025, indicating strong market demand[9] Product Development and Recognition - EXL launched EXLdata.ai in partnership with Databricks, aimed at addressing enterprise data readiness for AI[9] - EXL was recognized as a Market Leader in the HFS Research Horizon Insurance Services 2025 report, highlighting its expertise in AI-driven operational insights[9] Asset and Liability Management - Total assets increased to $1,733,632, up from $1,618,403, representing a growth of 7.1%[15] - Current assets rose to $891,946, compared to $795,189, reflecting an increase of 12.1%[15] - Total liabilities increased to $781,243 from $688,541, reflecting a rise of 13.4%[15] - Stockholders' equity increased to $952,389, up from $929,862, a growth of 2.5%[15] Currency Exchange Impact - The average exchange rate of the U.S. dollar against the Indian rupee depreciated by 5.3% from Q3 2024 to Q3 2025[20] Sequential Growth - Sequential revenue growth from Q2 2025 to Q3 2025 was 2.9% on a reported basis[4] Operating Income Margin - Adjusted operating income margin for Q3 2025 was 19.4%, slightly down from 19.9% in Q3 2024[23]

Core Insights - ExlService Holdings, Inc. reported a revenue of $529.6 million for Q3 2025, reflecting a year-over-year increase of 12.2% [1][3] - The diluted EPS (GAAP) for Q3 2025 was $0.36, up 10.7% from $0.33 in Q3 2024, while the adjusted diluted EPS (Non-GAAP) was $0.48, an increase of 10.8% from $0.44 in Q3 2024 [1][6] Financial Performance - Revenue for Q3 2025 increased to $529.6 million from $472.1 million in Q3 2024, marking a 12.2% growth on a reported basis and 12.3% on a constant currency basis [3] - Sequentially, revenue rose by 2.9% on a reported basis and 3.1% on a constant currency basis from Q2 2025 [3] - The operating income margin for Q3 2025 was 14.4%, compared to 14.7% in Q3 2024 and 15.8% in Q2 2025 [4][6] Guidance and Future Outlook - The company raised its full-year guidance for revenue to between $2.07 billion and $2.08 billion, indicating a year-over-year growth of 13% [2][12] - Adjusted diluted EPS guidance was increased to a range of $1.88 to $1.92, representing a 14% to 16% increase over 2024 [2][12] Business Highlights - ExlService won 21 new clients in Q3 2025 and launched EXLdata.ai in partnership with Databricks, aimed at addressing enterprise data readiness for AI [12] - The company was recognized as a Market Leader in the HFS Research Horizon Insurance Services 2025 report and as a Leader in Everest Group's Healthcare Data, Analytics and AI Services PEAK Matrix® 2025 [12] Segment Performance - Revenue from the Insurance segment was $180.5 million in Q3 2025, up from $166.4 million in Q3 2024 [4] - The Healthcare and Life Sciences segment generated $135.3 million, compared to $111.2 million in the same quarter last year [4] - Banking, Capital Markets, and Diversified Industries segment revenue was $121.0 million, up from $108.3 million in Q3 2024 [4]

Core Insights - EXL and Schneider National have launched a digital transformation initiative aimed at enhancing logistics operations through advanced data and AI technologies, resulting in significant efficiency improvements and cost reductions [1][2][4] Group 1: Digital Transformation Initiative - The collaboration targets manual processes and frequent hand-offs that cause delays in logistics operations, historically averaging three days from load creation to appointment confirmation [2] - The initiative has digitized and optimized the entire appointment scheduling workflow, leading to a more than 50% improvement in average cycle time for scheduling appointments and a 24% reduction in cost per appointment scheduled [3][4] Group 2: Impact on Supply Chain Efficiency - The implementation of a cloud-native, 24/7 scalable solution allows for near-real-time appointment setting, significantly enhancing customer and driver experiences [3] - This initiative sets a new benchmark for efficiency in the supply chain, demonstrating the transformative potential of intelligent automation in addressing long-standing challenges within the trucking industry [4]

Core Insights - EXL has appointed Patrick "Pat" Geraghty as an independent director on its Board of Directors effective October 20, 2025, bringing extensive experience in the healthcare industry [1][6] - Geraghty has over 40 years of experience in healthcare insurance and has a proven track record of innovation and transformation through technology and AI investments [2][4] Company Overview - EXL is a global data and AI company that provides services and solutions aimed at reinventing client business models and driving better outcomes [5] - The company was founded in 1999 and is headquartered in New York, employing approximately 61,000 people across six continents [5] Leadership Insights - Rohit Kapoor, Chairman and CEO of EXL, expressed enthusiasm about Geraghty's appointment, highlighting his experience in leading large healthcare payer organizations [2] - Vikram S. Pandit, lead independent director, emphasized the valuable insights Geraghty will bring to the board as the company continues to execute its data and AI growth strategy [2] Geraghty's Background - Geraghty previously served as President and CEO of GuideWell, where he scaled the company from $8 billion to over $32 billion in annual revenue [4] - He has also held leadership roles at Blue Cross Blue Shield of Minnesota, turning the organization from losses to profitability [4]

Core Insights - EXL has renewed its collaboration with Whitbread, focusing on a data-driven approach to transform Whitbread's finance and accounting operations [1][2] - The partnership aims to enhance operational efficiency and drive business value through a comprehensive financial service suite [2][3] - EXL's services will help Whitbread improve financial agility, standardize processes, and reduce operating expenses [3][4] Company Overview - EXL is a global data and AI company that provides services to reinvent business models and drive growth across various industries, including hospitality [6] - The company was founded in 1999 and is headquartered in New York, employing approximately 61,000 people worldwide [6] Partnership Details - The renewed collaboration is a three-year agreement aimed at delivering data-driven financial services and optimizing financial operations [2][3] - EXL will assist Whitbread in updating legacy process flows through the implementation of analytical tools and automation [4] - The partnership emphasizes a long-term, collaborative relationship to ensure continuous and efficient operation of core processes [3][4]