ExlService Holdings, Inc. reported a significant increase in financial performance for the second quarter of 2025, with revenues reaching $514.5 million, a 14.7% increase from $448.4 million in the same period last year. For the first half of 2025, the company generated $1.015 billion in revenues, up 14.8% from $884.9 million in the first half of 2024. The growth was driven by strong demand across all reportable segments, particularly in Healthcare and Life Sciences, which saw a revenue increase of 23.4% due to new client acquisitions and the impact of the August 2024 acquisition of ITI Data.
Net income for the second quarter was $66.1 million, a 44.1% increase compared to $45.8 million in the prior year. For the first six months, net income rose to $132.6 million from $94.6 million, reflecting improved operational efficiencies and higher gross margins, which increased to 37.7% from 37.1% year-over-year. The company attributed these results to effective cost management, despite rising employee-related expenses and technology costs.
In terms of strategic developments, ExlService implemented a new operational structure in early 2025, realigning its reporting segments into Industry Market Units (IMUs) to enhance client service and operational efficiency. This restructuring integrates analytics as a core capability across all segments, which now include Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets. The company also reported a notable increase in its employee headcount, which is essential for supporting its growth strategy.
Operationally, ExlService's customer base remains concentrated, with its top ten clients accounting for 33.5% of total revenues in the second quarter. The company continues to focus on diversifying its client portfolio to mitigate risks associated with client concentration. Additionally, ExlService's cash flow from operating activities significantly improved, totaling $112.6 million for the first half of 2025, compared to $53.0 million in the same period last year, indicating strong cash generation capabilities.
Looking ahead, ExlService Holdings anticipates continued growth driven by its data and AI-led services, as well as ongoing investments in technology and infrastructure. The company plans to utilize cash from operating activities to fund its strategic initiatives, including potential acquisitions and capital expenditures, while maintaining compliance with its financial covenants under its credit agreement.
About ExlService Holdings, Inc.
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