Exlservice (EXLS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $529.6M, up 12.2% year-over-year, with adjusted EPS rising 10.8% to $0.48 and net income up 9.7% to $58.2M.

• Data and AI-led revenue grew 17.9% year-over-year (constant currency), now 56.4% of total revenue, with digital operations up 5.9%.

• 21 new clients were added, headcount increased by 2,500 to 63,636, and the ITI Data acquisition contributed to growth.

• Launched EXLdata.ai, an Agentic AI suite, in partnership with Databricks, reducing implementation time and addressing unstructured data challenges.

• Recognized as a leader in insurance, healthcare, and banking AI services by HFS Research, Everest Group, and IDC.

Financial highlights

• Q3 2025 revenue: $529.6M (+12.2% YoY); adjusted operating margin: 19.4% (down 50 bps YoY); adjusted EBITDA: $114.4M (21.6% margin).

• Net income: $58.2M (+9.7% YoY); adjusted net income: $78.0M; diluted EPS: $0.36; adjusted EPS: $0.48.

• Gross margin: 38.5% (up 70 bps YoY); operating income: $76.2M (+9.8% YoY); adjusted operating income: $102.6M.

• Cash flow from operations for nine months: $233M (+43% YoY); cash, equivalents, and short-term investments at 9/30/25: $390.1M.

• Net cash position: $38M; long-term borrowings: $349.9M; total assets: $1.73B.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $2.07B–$2.08B (13% YoY growth); adjusted EPS guidance increased to $1.88–$1.92 (14–16% YoY growth).

• Capital expenditures projected at $50M–$55M for 2025.

• Guidance based on current exchange rates: USD/INR 87.5, GBP/USD 1.33, USD/PHP 58.0.

• Existing cash and investments expected to cover cash requirements for the next 12 months.

• Confident in sustaining double-digit growth into 2026.