EXL Reports 2025 Fourth Quarter and Year-End Results; Issues 2026 Guidance

Core Insights - ExlService Holdings, Inc. reported a strong financial performance for Q4 2025, with revenue of $542.6 million, reflecting a year-over-year increase of 12.7% and a full-year revenue of $2.09 billion, up 13.6% from 2024 [1][7] - The company achieved a diluted EPS (GAAP) of $0.38 for Q4 2025, a 21.8% increase from $0.31 in Q4 2024, and an adjusted diluted EPS (Non-GAAP) of $0.50, up 15.0% from $0.44 in the same quarter last year [1][10] - For 2026, ExlService expects revenue to be between $2.275 billion and $2.315 billion, indicating a growth of 9% to 11% year-over-year, and adjusted diluted EPS is projected to be in the range of $2.14 to $2.19, representing a 10% to 12% increase over 2025 [2][17] Financial Highlights - Q4 2025 revenue increased to $542.6 million from $481.4 million in Q4 2024, marking a 12.7% growth on a reported basis and 12.6% on a constant currency basis [3][6] - The full-year revenue for 2025 was $2.09 billion, compared to $1.84 billion in 2024, reflecting a 13.6% increase [7][19] - The operating income margin for Q4 2025 was 14.4%, consistent with the previous quarter, while the adjusted operating income margin was 18.8% [10][11] Business Segments Performance - In Q4 2025, the Insurance segment generated $185.8 million in revenue, up from $173.3 million in Q4 2024, while the Healthcare and Life Sciences segment saw revenue rise to $142.2 million from $112.7 million [4][6] - The Banking, Capital Markets, and Diversified Industries segment reported revenue of $122.6 million, an increase from $110.6 million in the same quarter last year [4][6] - For the full year 2025, the Insurance segment revenue was $710.6 million, Healthcare and Life Sciences was $532.5 million, and Banking, Capital Markets, and Diversified Industries was $482.4 million [8][19] Strategic Initiatives - The company won 21 new clients in Q4 2025 and a total of 65 new clients for the full year [16] - ExlService launched EXLdata.ai, a suite of AI-native data solutions aimed at addressing enterprise challenges [16] - The company announced a $500 million common stock repurchase program, reflecting confidence in its growth trajectory [2][17]