ExlService Holdings, Inc. reported a revenue increase of 13.6% for fiscal year 2025, reaching $2.09 billion compared to $1.84 billion in fiscal 2024. The growth was attributed to a combination of expanding business from existing clients and new client acquisitions, including contributions from the acquisition of Incandescent Technologies, Inc. (ITI Data). The company’s net income also rose significantly, up 26.6% to $251 million from $198.3 million in the previous year, reflecting improved operational efficiencies and higher gross margins.
The company implemented a new operational structure in early 2025, creating Industry Market Units (IMUs) and Strategic Growth Units (SGUs) to enhance client service and align with its data and AI strategy. This restructuring included the integration of its former Analytics segment into each IMU, allowing for a more tailored approach to client needs. The reportable segments now include Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets, with the latter focusing on expanding EXL's footprint outside North America.
Operationally, EXL's workforce grew to over 65,000 employees, with significant presence in India and the Philippines. The company served approximately 590 clients in 2025, a slight increase from 570 in 2024, and maintained a diverse client base with no single client accounting for more than 10% of total revenues. The company’s top ten clients contributed 34% of total revenues, consistent with the previous year, indicating a stable revenue concentration.
In terms of financial health, EXL's cost of revenues increased by 12.1% to $1.29 billion, primarily due to rising employee-related costs and operational expenses. The gross margin improved to 38.4%, up from 37.6% in 2024, driven by higher revenues and operational efficiencies. The company also reported a foreign exchange gain of $2.8 million, contributing positively to its financial results.
Looking ahead, EXL plans to continue investing in its data and AI capabilities, with anticipated capital expenditures of $50 million to $55 million for fiscal 2026. The company remains focused on expanding its service offerings and client base while navigating the competitive landscape of the data and AI solutions market. The management expressed confidence in sustaining growth through strategic acquisitions and enhancing operational efficiencies, despite potential challenges from market fluctuations and regulatory changes.
About ExlService Holdings, Inc.
EXL is a global data and AI company providing digital operations, analytics, and industry-specific solutions. It serves industries such as insurance, healthcare, banking, retail, and energy, leveraging advanced analytics, generative AI, automation, and cloud technology. Its business model focuses on transforming client operations, enhancing customer experience, and driving growth through innovative, AI-powered services and long-term client relationships.
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