Revenue: As of FY2025, the actual value is USD 2.088 B, beating the estimate of USD 2.078 B.EPS: As of FY2025, the actual value is USD 1.54, beating the estimate of USD 1.517.EBIT: As of FY2025, the actual value is USD 321.76 M.<h4>Overall Financial Performance</h4>ExlService Holdings, Inc. reported revenues of $2,087.7 million for fiscal 2025, an increase of 13.6% from $1,838.4 million in fiscal 2024. Cost of revenues increased by 12.1% to $1,286.6 million in fiscal 2025, primarily due to higher employee-related costs, partially offset by lower mail and data expenses and a foreign exchange gain. Gross profit rose by 15.9% to $801.1 million in fiscal 2025, with gross margin improving by 80 basis points to 38.4%. Income from operations increased by 19.0% to $313.8 million, and net income grew by 26.6% to $251.0 million in fiscal 2025.<h4>Segment Revenue Performance (Fiscal 2025 vs. Fiscal 2024)</h4><ul><li>Insurance: Revenues were $710.6 million, up 8.3%. Growth was driven by 7.5% from existing clients and 0.8% from new clients.</li><li>Healthcare and Life Sciences: Revenues reached $532.5 million, a 23.7% increase, with 22.4% growth from existing clients and 1.3% from new clients, including revenue from the Incandescent Technologies, Inc. (ITI Data) acquisition.</li><li>Banking, Capital Markets and Diversified Industries: Revenues totaled $482.4 million, growing 13.0%, with 5.6% from existing clients and 7.4% from new clients, including ITI Data.</li><li>International Growth Markets: Revenues were $362.2 million, an 11.6% increase, with 8.0% growth from existing clients and 3.9% from new clients (including ITI Data), partially offset by a -0.3% foreign exchange impact.</li></ul><h4>Segment Cost of Revenues and Gross Margin (Fiscal 2025 vs. Fiscal 2024)</h4><ul><li>Insurance: Cost of revenues increased by $28.9 million (6.8%) to $453.8 million, and gross margin increased by 80 basis points to 36.1%.</li><li>Healthcare and Life Sciences: Cost of revenues increased by $57.0 million (23.5%) to $300.2 million, with gross margin remaining flat at 43.6%.</li><li>Banking, Capital Markets and Diversified Industries: Cost of revenues increased by $30.2 million (11.2%) to $298.8 million, and gross margin improved by 100 basis points to 38.1%.</li><li>International Growth Markets: Cost of revenues increased by $23.1 million (10.9%) to $233.8 million, and gross margin increased by 40 basis points to 35.5%.</li></ul><h4>Operational Costs and Other Financial Metrics</h4>Selling, General and Administrative (SG&amp;A) Expenses increased by $56.0 million in fiscal 2025, reaching 20.5% of net revenues, driven by higher employee-related costs, investments in digital and generative AI, and increased sales and marketing costs. Depreciation and Amortization Expense increased by 7.0%. A foreign exchange gain, net, of $2.8 million was recorded. Interest expense decreased by $1.7 million, while other income, net, marginally decreased to $16.0 million. Income tax expense rose to $63.7 million, with the effective tax rate decreasing to 20.3%.<h4>Cash Flow Summary (Fiscal 2025 vs. Fiscal 2024)</h4>Net cash provided by operating activities was $350.7 million, an increase of 30.6%. Net cash used for investing activities was $49.2 million, a decrease of 58.6%, primarily due to higher proceeds from investment redemption and no business acquisition payments in fiscal 2025. Net cash used for financing activities was $312.8 million, an increase of 162.6%, mainly due to higher treasury stock purchases and lower net proceeds from borrowings.<h4>Unique Operational Metrics</h4>ExlService Holdings, Inc. generated revenues from approximately 590 clients in 2025, winning 65 new clients. The top three, five, and ten clients accounted for 17.8%, 23.9%, and 34.0% of revenues, respectively, in 2025. Days Sales Outstanding (DSO) was 60 days as of December 31, 2025. The company had over 65,000 professionals, with an employee attrition rate of 23.6% for employees with more than 180 days of service in 2025. The company added 9 new patents in 2025, bringing the total to 12. Cash, cash equivalents, and short-term investments totaled $328.4 million, with outstanding cash flow hedges having a mark-to-market loss of - $19.3 million. Total borrowings were $298.7 million as of December 31, 2025, with an effective interest rate of 5.7% for the revolving credit and term loan facilities.<h4>Outlook / Guidance</h4>ExlService Holdings, Inc. anticipates capital expenditures of $50 million to $55 million for fiscal 2026, primarily for growth requirements, infrastructure, and technology investments. The company expects its current cash, cash equivalents, short-term investments, and liquidity sources to cover cash requirements for the next 12 months. The Pillar Two Framework is not expected to materially impact consolidated financial statements.

EXLService | 10-K: FY2025 Revenue Beats Estimate at USD 2.088 B