ExlService (US:EXLS)2025-10-28 20:20Financial 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]