ExlService Holdings, Inc. Q4 FY2025 earnings call

• Rohit Kapoor mentioned strong Q4 and full year 2025 results with double-digit growth momentum and strong execution of data and AI strategy. - Walked through performance across segments including Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, International Growth Market with key wins. - Highlighted market opportunity in AI and strategy for growth including deepening data, AI and services capabilities, expanding partner ecosystem, developing AI talent. - Vivek Jettley provided insights into Q4 and full-year 2025 financial performance and 2026 outlook

For the full year 2025, revenue increased 14% to nearly $2,100,000,000. In Q4, revenue reached $543,000,000, representing 13% year-over-year organic growth. Revenue is split into data and AI led (grew 21% y/y, 57% of total revenue) and digital operations (grew 4% y/y, 43% of business). Total operations grew 11% y/y in Q4 and 14% for full year. Insurance segment grew 7% y/y and 3% sequentially, representing a third of revenue. Healthcare and Life Sciences segment was fastest growing with 26% y/y growth, representing ~a quarter of Q4 revenue. Banking, Capital Markets and Diversified Industries segment grew 11% y/y, representing nearly a quarter of Q4 revenue. International Growth Market segment grew 8% y/y, representing 17% of total revenue

Expect 2026 revenue to be in the range of $2,275,000,000 to $2,315,000,000, representing 9% to 11% in constant currency organic growth. Adjusted diluted EPS is expected to be in the range of $2.14 to $2.19, representing a 10% to 12% increase over 2025. Board of Directors authorized a $500,000,000 common stock repurchase program effective February 28, 2026, for a two-year period

Risks include general economic conditions, factors set forth in press release, and those discussed in periodic reports and other SEC filings. Also, new labor code in India may have an impact on employee costs

Q: Puneet Jain asked about accelerated decision-making at clients and what drives it.

A: Rohit Kapoor said greater propensity from enterprise clients to adopt and leverage AI, shift from cost takeout to growth.

Q: Bryan Bergin asked about reconciling 2026 growth guides.

A: Rohit Kapoor said 2026 guidance is same as 2025 organic constant currency basis, backlog is stronger.

Q: David Grossman asked about win with top five payer in Healthcare.

A: Vivek Jettley said Healthcare is strong growth driver with broad-based growth in multiple offerings.

Q: Eleanor Dyke asked about win with large North American insurance carrier.

A: Vivek Jettley said it was new client, complete enterprise transformation, explicit pricing for IP.

Q: Robbie Bamberger asked about employee hiring and margins.

A: Rohit Kapoor said employee headcount growth rate lower than revenue growth, investing in AI training; Vivek Jettley said adjusted operating margin expected to be flat.

Q: Vincent Colicchio asked about competitive landscape and acquisition priorities.

A: Rohit Kapoor said seeing new competitors, advantage is integrated approach; acquisition priorities include furthering AI strategy, data capabilities, engineering skill sets, geographic diversification