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The market expects ExlService Holdings (EXLS - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis provider of outsourcing services is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +16.7%.

Revenues are expected to be $616.29 million, up 16.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for ExlService Holdings?For ExlService Holdings, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.06%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that ExlService Holdings will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that ExlService Holdings would post earnings of $0.55 per share when it actually produced earnings of $0.59, delivering a surprise of +7.27%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ExlService Holdings appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Computers - IT Services industry, Roper Technologies (ROP - Free Report) , is soon expected to post earnings of $5.79 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +12.7%. Revenues for the quarter are expected to be $2.18 billion, up 7.9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Roper Technologies has remained unchanged. Nevertheless, the company now has an Earnings ESP of +1.13%, reflecting a higher Most Accurate Estimate.

When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Roper Technologies will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways INOD's first-half revenues jumped 56.1%, with net income nearly doubling to $29.3 million.EXLS offers greater scale and diversification, with first-half revenues up 14.7% to about $1.17 billion.INOD trades at 43.31X forward earnings versus 13.71X for its rival, highlighting a wide valuation gap. Innodata Inc. (INOD - Free Report) and ExlService Holdings, Inc. (EXLS - Free Report) are benefiting from rising enterprise and technology spending on artificial intelligence, data engineering and AI-enabled services. Innodata has greater exposure to frontier AI developers and generative AI model development, while ExlService combines data and AI capabilities with deep domain expertise across insurance, healthcare, banking and other enterprise markets.

Both companies delivered strong growth in the first half of 2026, supported by rising AI adoption. However, Innodata is expanding at a much faster pace, while ExlService offers significantly greater scale, diversification and a lower valuation.

Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Innodata StockInnodata's growth profile remains its strongest attraction. First-half 2026 revenues surged 56.1% year over year to $182.2 million from $116.7 million. Net income almost doubled to $29.3 million from $15 million, while earnings per share (EPS) increased to 86 cents from 43 cents. Adjusted EBITDA climbed to $50.3 million from $25.9 million, indicating substantial operating leverage alongside rapid revenue expansion.

The company's opportunity is increasingly tied to higher-value AI development work spanning pre-training, post-training, model evaluation and benchmarking. Innodata has also established an early presence in agentic reinforcement learning, securing programs involving personalization of long-horizon agents and reinforcement-learning environments for computer-use tasks. Management believes its research capabilities can help deepen relationships with leading AI labs while opening opportunities in enterprise and federal markets.

Innodata is also broadening its customer base. Its second-largest Big Tech customer scaled rapidly during the first half, while the company added another fast-growing frontier AI lab. Nonetheless, customer concentration remains a meaningful risk, as a few large technology companies still account for a sizable portion of revenues. Project timing and changing AI-development priorities can therefore create volatility.

Management continues to expect at least 40% revenue growth in 2026, with several potential large programs not incorporated into the outlook. Innodata faces competition for data engineering and AI-development spending from larger technology-services companies such as Genpact (G - Free Report) .

The Case for ExlService StockExlService offers a larger and more diversified AI-services platform. First-half 2026 revenues increased 14.7% year over year to roughly $1.17 billion. Adjusted operating margin expanded 20 basis points to 20.1%, while adjusted EPS advanced 21.3% to $1.17. The company also generated $90 million of operating cash flow during the period, underscoring its established profitability and cash-generating capacity.

Growth is increasingly being driven by data and AI services. Data and AI-led revenues represented 61% of second-quarter revenues and increased 30.7% in constant currency, reflecting continued migration toward higher-value AI work. ExlService is helping enterprises deploy AI in complex workflows across insurance, healthcare, banking and other regulated industries, where its industry knowledge provides an important differentiator.

Healthcare and Life Sciences, Insurance and International Growth Markets all recorded double-digit growth during the first half. EXL is also expanding its AI ecosystem through relationships with OpenAI, Anthropic, Databricks, Snowflake and NVIDIA. The iMerit acquisition is intended to deepen EXL's foundation-model expertise and strengthen its position in enterprise AI.

The principal drawback is that EXLS' underlying growth rate remains well below Innodata's. Its Digital Operations business is also undergoing a transition as more work shifts toward AI-led solutions. Integration of iMerit adds another execution consideration. EXL competes with global IT and data-services providers such as Cognizant Technology Solutions (CTSH - Free Report) .

Share Momentum Favors InnodataNeither stock has outperformed over the full one-year period. Shares of both INOD and EXLS have plunged 13.3% and  21.4%, respectively, against the 16.9% gain for the Zacks S&P 500 Composite.

INOD vs. EXLS Price Performance (1-Year)

Image Source: Zacks Investment Research

The six-month comparison paints a different picture. INOD stock has surged 93.8%, sharply outperforming EXLS' 13.2% gain and the S&P 500's 22.1% increase. This reflects stronger enthusiasm around Innodata's AI growth trajectory, although the sharp appreciation also raises expectations for continued execution.

INOD vs. EXLS Price Performance (6-Month)

Image Source: Zacks Investment Research

EXLS Offers a Much Cheaper Entry PointValuation clearly favors ExlService. On a forward 12-month P/E basis, INOD trades at 43.31X compared with only 13.71X for EXLS.

INOD vs. EXLS Valuation (P/E F12M)

Image Source: Zacks Investment Research

Innodata's premium reflects its substantially faster expected growth but leaves less room for execution disappointments. EXLS' lower multiple provides a greater valuation cushion while still offering exposure to accelerating enterprise AI adoption.

Estimate Revisions Point UpwardInnodata's earnings outlook has strengthened. Over the past 60 days, the Zacks Consensus Estimate for 2026 EPS increased to $1.18, while the 2027 estimate edged up to $1.67, as shown below. The consensus estimate projects 42.1% revenue growth in 2026 and 28.1% growth in 2027, with EPS expected to rise 28.3% and 41.7%, respectively.

INOD EPS Estimate Revision Trend

Image Source: Zacks Investment Research

For EXLS, the 2026 EPS estimate increased to $2.29 and the 2027 estimate rose to $2.60, as shown below. Revenues are expected to grow 15.5% in 2026 and 12.1% in 2027, while 2027 EPS is projected to increase 13.6%.

EXLS EPS Estimate Revision Trend

Image Source: Zacks Investment Research

Which Stock Has More Upside?Both stocks currently carry a Zacks Rank #3 (Hold). INOD appears to offer greater upside potential, although it comes with considerably higher valuation and customer-concentration risk. Its 56% first-half revenue growth, nearly doubled adjusted EBITDA, expanding frontier-AI relationships and stronger long-term consensus growth provide the more aggressive growth setup. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EXLS presents a more balanced profile, supported by diversified industry exposure, consistent profitability, strong enterprise AI positioning and a much cheaper valuation. However, for investors focused primarily on growth potential, Innodata's faster operating momentum and stronger expected revenue and earnings expansion give INOD the edge over EXLS at present.

 | Source: EXL

NEW YORK, Aug. 18, 2026 (GLOBE NEWSWIRE) -- EXL (NASDAQ: EXLS), a global data and AI company, announced the closing of a new credit facility with PNC Bank, N.A., as Administrative Agent, and a syndicate of lenders that allows for borrowings of up to $1 billion. Bank of America, N.A., JPMorgan Chase Bank, N.A., and TD Bank, N.A. acted as joint lead arrangers on this transaction.

The facility increases EXL’s borrowing capacity from the previous limit of $600 million and provides greater covenant flexibility to support the company’s business strategy. The five-year senior secured credit agreement includes a $400 million term loan, permits revolver borrowings of up to $600 million, and has an accordion feature that would allow the facility to expand equal to the greater of $470 million or 100% of EBITDA for the trailing four quarters. The term of the new agreement will expire on August 18, 2031.

“This deal reflects the confidence our banking partners have in EXL’s financial strength and the long-term trajectory of our business,” said Maurizio Nicolelli, chief financial officer of EXL. “We have consistently prioritized a strong balance sheet, and this expanded debt capacity gives us the flexibility to extend our competitive advantage through targeted mergers and acquisitions while continuing to return capital to our shareholders under our $500 million share repurchase authorization. The closing of this facility is a clear demonstration of the focused execution against our capital allocation strategy.”

About EXL 

EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world's leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 68,000 employees spanning six continents. For more information, visit www.exlservice.com. 

Cautionary Statement Regarding Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs or service our indebtedness, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.

Contacts: 
Investor Relations
Andrew Thut
Head of Investor Relations and Capital Markets
[email protected]  

Media
Keith Little  
Head of Public Relations  
[email protected]   

July 28, 2026 16:01 ET  | Source: EXL

2026 Second Quarter Revenue of $594.8 Million, up 15.6% year-over-year

Q2 Diluted EPS (GAAP) of $0.42, up 4.9% from $0.40 in Q2 of 2025

Q2 Adjusted Diluted EPS (Non-GAAP) (1) of $0.59, up 22.3% from $0.49 in Q2 of 2025

NEW YORK, July 28, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended June 30, 2026.

Chairman and Chief Executive Officer Rohit Kapoor said, “We entered 2026 with strong momentum that accelerated through the first half, delivering second quarter revenue growth of 16% year-on-year and adjusted diluted EPS of 22% year-on-year. Our sustained double-digit growth reflects continued execution of our data and AI strategy and our differentiated position which helps clients effectively adopt AI across the enterprise. We have very good visibility into the balance of the year and look forward to a solid finish to 2026.”

Chief Financial Officer Maurizio Nicolelli said, “Our strong second quarter performance, sustained growth momentum and healthy pipeline give us the confidence to increase our organic full-year revenue growth guidance to 13% to 14%. In addition, we are also updating our guidance to include $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026. We now expect full-year 2026 total revenue to be in the range of $2.390 billion to $2.415 billion, up from our prior guidance of $2.30 billion to $2.33 billion, reflecting 14% to 16% year-over-year growth on a reported basis. We now expect adjusted diluted earnings per share of $2.25 to $2.29, a 16% to 18% increase over 2025, up from our prior guidance of $2.18 to $2.23.”

__________________________________________________________

(1)Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.
Financial Highlights: Second Quarter 2026

Revenue for the quarter ended June 30, 2026, increased to $594.8 million compared to $514.5 million for the second quarter of 2025, an increase of 15.6% on a reported basis and 15.9% on a constant currency basis. Revenue increased by 4.3% sequentially on a reported basis and 4.4% on a constant currency basis, from the first quarter of 2026.   Revenue Gross Margin  Three months ended  Three months ended Reportable Segments June 30,
2026 June 30,
2025 March 31,
2026 June 30,
2026 June 30,
2025 March 31,
2026  (dollars in millions)    Insurance $197.8 $172.2 $194.0 34.6 % 34.8 % 37.7 %Healthcare and Life Sciences  158.0  129.5  151.9 46.9 % 43.5 % 45.3 %Banking, Capital Markets and Diversified Industries  133.9  121.1  127.4 34.8 % 37.8 % 36.9 %International Growth Markets  105.1  91.7  97.1 35.1 % 35.1 % 34.1 %Total $594.8 $514.5 $570.4 38.0 % 37.7 % 38.9 %                    Operating income margin for the quarter ended June 30, 2026 was 14.7%, compared to 15.8% for the second quarter of 2025 and 16.1% for the first quarter of 2026. Adjusted operating income margin for the quarter ended June 30, 2026 was 19.7%, compared to 19.6% for the second quarter of 2025 and 20.5% for the first quarter of 2026.Diluted earnings per share for the quarter ended June 30, 2026 was $0.42, compared to $0.40 for the second quarter of 2025 and $0.43 for the first quarter of 2026. Adjusted diluted earnings per share for the quarter ended June 30, 2026 was $0.59, compared to $0.49 for the second quarter of 2025 and $0.58 for the first quarter of 2026. Business Highlights: Second Quarter 2026

Won 17 new clients in the second quarter of 2026.EXL agreed to acquire iMerit, advancing its leadership in enterprise AI by adding foundation model expertise and technology.EXL achieved gold status with Databricks and deepened its collaboration to help enterprises build trusted data foundations for AI at scale.EXL became an OpenAI Services Partner, expanding its AI delivery capabilities through OpenAI’s enterprise capabilities.EXL joined the Claude Partner Network, further strengthening its AI ecosystem with Anthropic’s frontier AI models.EXL achieved Snowflake Premier Partner status, reinforcing its commitment to delivering strategic data and AI solutions for clients.EXL integrated with NVIDIA Transaction Foundation Model, bringing next-generation fraud detection and risk intelligence to financial institutions.EXL named a Horizon 3 - Market Leader in the HFS Horizons Data Modernization and AI, 2026 report for EXL’s ability to operationalize AI through semantic data foundations, agentic workflow orchestration, and proven enterprise-scale transformation outcomes.Appointed Bhupender Singh as president and head of international growth markets. 2026 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 95.0, U.K. pound sterling to U.S. dollar exchange rate of 1.33, U.S. dollar to the Philippine peso exchange rate of 61.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2026:

Revenue of $2.390 billion to $2.415 billion, representing an increase of 14% to 16% on a reported basis, which includes $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026, and 13% to 14% on an organic constant currency basis from 2025.Adjusted diluted earnings per share of $2.25 to $2.29, representing an increase of 16% to 18% from 2025. Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, July 29, 2026, at 10:00 A.M. ET to discuss the Company’s second quarter operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 68,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include the satisfaction or waiver of applicable closing conditions to the consummation of the iMerit acquisition and the expected timing thereof, our ability to successfully integrate announced or future strategic acquisitions or achieve anticipated synergies, our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business and other factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

 EXLSERVICE HOLDINGS, INC.
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)
  Three months ended June 30, Six months ended June 30, 2026
 2025
 2026
 2025
Revenues, net$594,763  $514,460  $1,165,114  $1,015,479 Cost of revenues(1) 368,800   320,272   717,070   627,977 Gross profit(1) 225,963   194,188   448,044   387,502 Operating expenses:       General and administrative expenses 74,436   59,549   143,487   118,966 Selling and marketing expenses 49,628   39,446   96,829   81,371 Depreciation and amortization expense 14,604   14,055   28,607   27,612 Total operating expenses 138,668   113,050   268,923   227,949 Income from operations 87,295   81,138   179,121   159,553 Foreign exchange gain, net 1,609   2,211   2,744   3,403 Interest expense (5,068)  (4,282)  (9,019)  (8,426)Other income, net 130   5,671   2,521   10,374 Income before income tax expense and earnings from equity affiliates 83,966   84,738   175,367   164,904 Income tax expense 19,426   18,546   43,744   32,042 Income before earnings from equity affiliates 64,540   66,192   131,623   132,862 Loss from equity-method investment (29)  (141)  (31)  (250)Net income$64,511  $66,051  $131,592  $132,612 Earnings per share:       Basic$0.42  $0.41  $0.85  $0.82 Diluted$0.42  $0.40  $0.85  $0.81 Weighted average number of shares used in computing earnings per share:       Basic 152,554,401   162,925,484   154,292,120   162,709,034 Diluted 152,831,994   164,193,258   154,858,444   164,376,498                  (1) Exclusive of depreciation and amortization expense.

 EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)
   As of  June 30, 2026 December 31, 2025     Assets    Current assets:    Cash and cash equivalents $126,722  $146,326 Short-term investments  157,102   182,041 Restricted cash  12,964   12,392 Accounts receivable, net  434,362   343,105 Other current assets  144,132   146,093 Total current assets  875,282   829,957 Property and equipment, net  114,587   111,821 Operating lease right-of-use assets  97,495   97,411 Restricted cash  7,086   7,251 Deferred tax assets, net  139,288   129,968 Goodwill  418,693   419,654 Other intangible assets, net  29,720   36,204 Long-term investments  6,396   8,198 Other assets  59,340   61,771 Total assets $1,747,887  $1,702,235 Liabilities and stockholders’ equity    Current liabilities:    Accounts payable $6,733  $4,753 Current portion of long-term borrowings  381,155   4,886 Deferred revenue  22,591   15,356 Accrued employee costs  112,908   146,775 Accrued expenses and other current liabilities  161,525   135,498 Current portion of operating lease liabilities  18,734   16,857 Total current liabilities  703,646   324,125 Long-term borrowings, less current portion  —   293,712 Operating lease liabilities, less current portion  88,130   88,167 Deferred tax liabilities, net  2,256   2,125 Other non-current liabilities  87,613   81,401 Total liabilities  881,645   789,530 Commitments and contingencies    Stockholders’ equity:    Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued  —   — Common stock, $0.001 par value; 400,000,000 shares authorized, 210,101,885 shares issued and 151,745,072 shares outstanding as of June 30, 2026 and 208,855,566 shares issued and 156,430,028 shares outstanding as of December 31, 2025  210   209 Additional paid-in capital  724,432   677,562 Retained earnings  1,664,571   1,532,979 Accumulated other comprehensive loss  (223,682)  (180,727)Total including shares held in treasury  2,165,531   2,030,023 Less: 58,356,813 shares as of June 30, 2026 and 52,425,538 shares as of December 31, 2025, held in treasury, at cost  (1,299,289)  (1,117,318)Total stockholders’ equity  866,242   912,705 Total liabilities and stockholders’ equity  $1,747,887  $1,702,235 
EXLSERVICE HOLDINGS, INC.

Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

Adjusted operating income and adjusted operating income margin;Adjusted EBITDA and adjusted EBITDA margin;Adjusted net income and adjusted diluted earnings per share; andRevenue growth on a constant currency basis. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, amortization of prior service cost arising from implementation of new Labor Codes in India, certain defined social security contributions, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

EXL provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's underlying business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period. Foreign currency translation impacted revenue growth, primarily driven by movements in the U.S. dollar against the Indian rupee (INR), the U.K. pound sterling (GBP), and Australian dollar (AUD).

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended June 30, 2026 and June 30, 2025, and the three months ended March 31, 2026:

 Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)
   Three months ended   June 30, March 31,  2026
 2025
 2026
Net income (GAAP) $64,511  $66,051  $67,081 add: Income tax expense  19,426   18,546   24,318 add/(subtract): Foreign exchange gain/(loss), net, interest expense, gain/(loss)
from equity-method investment and other income/(loss), net  3,358   (3,459)  427 Income from operations (GAAP) $87,295  $81,138  $91,826 add: Stock-based compensation expense  24,631   16,392   22,101 add: Amortization of acquisition-related intangibles  3,258   3,277   3,226 add: Acquisition-related expenses (a)  1,894   —   — Adjusted operating income (Non-GAAP) $117,078  $100,807  $117,153 Adjusted operating income margin as a % of revenue (Non-GAAP)  19.7 %  19.6 %  20.5 %add: Depreciation on long-lived assets  11,346   10,778   10,777 Adjusted EBITDA (Non-GAAP) $128,424  $111,585  $127,930 Adjusted EBITDA margin as a % of revenue (Non-GAAP)  21.6 %  21.7 %  22.4 %              (a)   To exclude acquisition-related expenses incurred for the announced acquisition of I Merit Inc. (“iMerit”) during the three months ended June 30, 2026.

 Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share amount)
   Three months ended  June 30, March 31,  2026
 2025
 2026
Net income (GAAP) $64,511  $66,051  $67,081 add: Stock-based compensation expense  24,631   16,392   22,101 add: Amortization of acquisition-related intangibles  3,258   3,277   3,226 add: Changes in fair value of contingent consideration  3,000   —   — add: Acquisition-related expenses (a)  1,894   —   — add: Amortization of prior service cost (b)  566   —   521 subtract: Acquisition-related adjustments  —   (945)  — subtract: Tax impact on stock-based compensation expense (c)  (6,097)  (4,211)  (1,316)subtract: Tax impact on amortization of acquisition-related intangibles  (821)  (807)  (812)subtract: Tax impact on amortization of prior service cost  (144)  —   (133)Adjusted net income (Non-GAAP) $90,798  $79,757  $90,668 Adjusted diluted earnings per share (Non-GAAP) $0.59  $0.49  $0.58  (a)To exclude acquisition-related expenses incurred for the announced acquisition of iMerit during the three months ended June 30, 2026.(b)To exclude amortization of prior service cost arising from the implementation of the new Labor Codes in India.(c)Tax impact includes ($17) and $203 during the three months ended June 30, 2026 and 2025 respectively, and $1,280 during the three months ended March 31, 2026, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.

July 08, 2026 08:01 ET  | Source: EXL

NEW YORK, July 08, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, will release financial results for the second quarter ended June 30, 2026, on Tuesday, July 28, 2026, after the market closes. An earnings news release, investor fact sheet and presentation will be published on the company’s investor relations website offering an overview of the financial results.

The company will host a conference call at 10:00 a.m. EDT the following day, Wednesday, July 29, 2026, with Chairman and Chief Executive Officer Rohit Kapoor and Executive Vice President and Chief Financial Officer Maurizio Nicolelli, who will provide insights into the company’s operational and financial results.

To listen to video live webcast or to participate in the call, please register here. A replay of the webcast will be available for approximately one year.

About EXL 

EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world's leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

Contact:
Andrew Thut
Head of Investor Relations and Capital Markets 
[email protected]