Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBE ...

Core Insights - ExlService Holdings, Inc. reported a revenue of $501.0 million for Q1 2025, reflecting a year-over-year increase of 14.8% [1][3] - The diluted EPS (GAAP) for Q1 2025 was $0.40, up 38.3% from $0.29 in Q1 2024, while the adjusted diluted EPS (Non-GAAP) was $0.48, an increase of 26.9% from $0.38 in Q1 2024 [1][10] - The company has increased its revenue guidance for 2025 to a range of $2.035 billion to $2.065 billion, up from the previous guidance of $2.025 billion to $2.060 billion, indicating a growth of 11% to 12% year-over-year [2][10] Financial Performance - Revenue for Q1 2025 was $501.0 million, compared to $436.5 million in Q1 2024, marking a 14.8% increase on a reported basis and 15.1% on a constant currency basis [3][12] - The operating income margin for Q1 2025 was 15.7%, compared to 14.1% in Q1 2024, while the adjusted operating income margin was 20.1%, up from 18.9% in Q1 2024 [10][21] - Net income for Q1 2025 was $66.6 million, compared to $48.8 million in Q1 2024, representing a significant increase [12][23] Business Segments - Revenue breakdown for Q1 2025 by segment included: - Insurance: $172.0 million (36.6% gross margin) - Healthcare and Life Sciences: $125.6 million (43.9% gross margin) - Banking, Capital Markets and Diversified Industries: $117.7 million (37.3% gross margin) - International Growth Markets: $85.7 million (36.6% gross margin) [4][10] Strategic Outlook - The company is focusing on accelerating its data and AI-led strategy, which has contributed to its strong business momentum [2][10] - ExlService Holdings, Inc. won 10 new clients in Q1 2025 and received multiple industry recognitions, including being named a Leader in various categories in the ISG Provider Lens™ Insurance Services 2024 report [10][12]

Core Viewpoint - Investors are evaluating Barrett Business Services (BBSI) and ExlService Holdings (EXLS) as potential undervalued stocks in the Outsourcing sector, with BBSI appearing to be the superior value option based on various valuation metrics [1][6]. Valuation Metrics - BBSI has a forward P/E ratio of 19.05, while EXLS has a forward P/E of 23.61, indicating that BBSI may be more attractively priced relative to its earnings [5]. - The PEG ratio for BBSI is 1.36, compared to EXLS's PEG ratio of 1.45, suggesting that BBSI offers better value when considering expected earnings growth [5]. - BBSI's P/B ratio is 4.78, whereas EXLS has a P/B ratio of 7.69, further supporting the argument that BBSI is undervalued relative to its book value [6]. Earnings Outlook - Both BBSI and EXLS currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - The Zacks Rank system emphasizes companies with improving earnings estimates, which applies to both BBSI and EXLS [2][3]. Value Grades - BBSI has received a Value grade of A, while EXLS has a Value grade of C, highlighting BBSI's stronger position as a value investment based on the analyzed metrics [6].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - ExlService Holdings (EXLS) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth potential beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Historical EPS growth for ExlService Holdings stands at 22.5%, with projected EPS growth of 14.2% for the current year, significantly surpassing the industry average of 8.1% [5] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as a sign of robust future prospects [4] Group 3: Cash Flow Growth - ExlService Holdings has a year-over-year cash flow growth of 2.1%, outperforming the industry average of -11.2%, which is crucial for funding new projects without external financing [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 4.8%, indicating strong cash generation capabilities [7] Group 4: Earnings Estimate Revisions - There is a positive trend in earnings estimate revisions for ExlService Holdings, with the Zacks Consensus Estimate for the current year increasing by 1.3% over the past month, which correlates with potential stock price movements [8] - The overall earnings estimate revisions have contributed to ExlService Holdings achieving a Zacks Rank of 2, reflecting its strong growth potential [9] Group 5: Investment Recommendation - The combination of a strong Growth Score and favorable earnings revisions positions ExlService Holdings well for outperformance, making it an attractive option for growth investors [10]

Core Viewpoint - ExlService Holdings (EXLS) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for ExlService Holdings suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Recent Performance and Projections - For the fiscal year ending December 2025, ExlService Holdings is projected to earn $1.88 per share, reflecting a 13.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for ExlService Holdings has risen by 2.8% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of ExlService Holdings to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns [10].

Group 1: Company Performance - ExlService Holdings (EXLS) has gained approximately 2.5% year-to-date, outperforming the average return of -2.3% for Business Services companies [4] - The Zacks Consensus Estimate for EXLS' full-year earnings has increased by 2.8% over the past quarter, indicating improved analyst sentiment and earnings outlook [3] - ExlService Holdings is part of the Outsourcing industry, which has an average loss of 0.5% this year, further highlighting EXLS's better performance [5] Group 2: Industry Context - The Business Services sector includes 272 individual stocks and currently holds a Zacks Sector Rank of 7 among 16 sector groups [2] - The Outsourcing industry, which includes ExlService Holdings, is ranked 66 in the Zacks Industry Rank [5] - In contrast, the Technology Services industry, which includes Gorilla Technology Group Inc., is ranked 63 and has experienced a decline of 28.7% this year [6]

NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- EXL (NASDAQ:EXLS), a global data and AI company, announced it has been named a Leader and a Star Performer in Everest Group's Life and Annuities (L&A) Insurance Business Process Services (BPS) and Third-Party Administrator (TPA) PEAK Matrix® Assessment 2025. This is the second consecutive year that EXL has earned this distinction. Everest Group cites EXL's digital integration of analytics and AI solutions, robust engagement models, and in-house domain expertise a ...

NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- EXL (NASDAQ: EXLS), a global data and AI company, announced it has been named a Leader and a Star Performer in Everest Group’s Life and Annuities (L&A) Insurance Business Process Services (BPS) and Third-Party Administrator (TPA) PEAK Matrix® Assessment 2025. This is the second consecutive year that EXL has earned this distinction. Everest Group cites EXL’s digital integration of analytics and AI solutions, robust engagement models, and in-house domain expertise ...

NEW YORK, April 10, 2025 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, will release financial results for the first quarter ended March 31, 2025, on Tuesday, April 29, 2025, after the market closes. An earnings news release, investor fact sheet and presentation will be published on the company’s investor relations website offering an overview of the financial results. The company will host a conference call at 10:00 a.m. EDT the following day, Wednesday, April 3 ...

Core Insights - The article emphasizes the importance of in-depth equity research and market insights for identifying actionable investment ideas and growth opportunities [1] Group 1: Company Analysis - The focus is on providing detailed equity research that can help investors navigate the complexities of the stock market [1] - The analysis aims to uncover both growth and value opportunities within various sectors [1] Group 2: Market Trends - There is a strong emphasis on understanding financial trends to make informed investment decisions [1] - The insights provided are intended to assist investors in recognizing potential market movements and investment strategies [1]