Exlservice (EXLS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $542.6M, up 12.7% year-over-year; full-year revenue was $2.09B, up 13.6% year-over-year, with adjusted EPS up 18% to $1.95.

• Delivered strong results exceeding expectations, driven by double-digit growth and robust execution of data and AI strategy.

• Significant client wins in insurance, healthcare, and financial services, with 21 new clients in Q4 and 65 for the year.

• Data and AI-led revenue accounted for over 55% of total, growing 18% year-over-year.

• Entering 2026 with strong momentum, high renewal rates, and over 75% recurring or annuity-like revenue.

Financial highlights

• Q4 revenue: $542.6M, up 12.7% year-over-year; full-year revenue: $2.09B, up 13.6%.

• Adjusted EPS for Q4: $0.50, up 15% year-over-year; full-year adjusted EPS: $1.95, up 18%.

• Adjusted operating margin for 2025: 19.5%, up 10 bps year-over-year; Q4 margin: 18.8%.

• Q4 adjusted EBITDA margin: 21.2%; full-year adjusted EBITDA margin: 21.7%.

• Cash flow from operations: $351M, up 30.6% year-over-year.

Outlook and guidance

• 2026 revenue guidance: $2.275B–$2.315B, representing 9%–11% year-over-year growth.

• 2026 adjusted diluted EPS guidance: $2.14–$2.19, up 10%–12% from 2025, including a 2–3 cent dilution from Indian labor code changes.

• Capital expenditures projected at $50–$55M; effective tax rate expected at 21%–22%.

• Board authorized a $500M share repurchase program for two years starting February 28, 2026.