# EDGAR Filing Document

**Accession Number:** 0001297989
**File Stem:** 0001297989-25-000012
**Filing Date:** 2025-7
**Character Count:** 35157
**Document Hash:** a67a9bd4478f670d3b5cd9de7b2a16bb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001297989-25-000012.hdr.sgml**: 20250729

**ACCESSION NUMBER**: 0001297989-25-000012

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250729

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250729

**DATE AS OF CHANGE**: 20250729

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ExlService Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001297989
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 820572194
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33089
- **FILM NUMBER:** 251161877

**BUSINESS ADDRESS:**
- **STREET 1:** 320 PARK AVENUE
- **STREET 2:** 29TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** (212) 277-7100

**MAIL ADDRESS:**
- **STREET 1:** 320 PARK AVENUE
- **STREET 2:** 29TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022

?xml version='1.0' encoding='ASCII'? exls-20250729

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**_________________________________________________________**

**FORM 8-K** 

**_________________________________________________________**

**CURRENT REPORT**

**Pursuant to Sections 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): July 29, 2025

**_________________________________________________________**

**EXLSERVICE HOLDINGS, INC.** 

**(Exact name of registrant as specified in its charter)**

**_________________________________________________________**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-33089** | **82-0572194** |
| (State or other jurisdiction<br>of incorporation or organization) | (Commission File Number) | (I.R.S. Employer<br>Identification No.) |

---

---

| | | |
|:---|:---|:---|
| **320 Park Avenue,** | **29**<sup>th</sup> **Floor,** | **10022** |
| **New York,** | **New York** | (Zip code) |
| (Address of principal executive offices) | (Address of principal executive offices) |  |

---

Registrant's telephone number, including area code: **(212) 277-7100** 

**NOT APPLICABLE**

(Former name or address, if changed since last report)

**____________________________________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.001 par value per share | EXLS | The Nasdaq Stock Market LLC |

---

    

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**Item 1.01. Entry into a Material Definitive Agreement.**

On July 29, 2025, ExlService Holdings, Inc. (the "Company") entered into a new supplemental confirmation (the "2025 Supplemental Confirmation") to the prior master confirmation (the "Master ASR Confirmation") (together with the 2025 Supplemental Confirmation, the "ASR Agreement"), with Citibank, N.A. ("Citibank"), as part of the Company's previously announced $500 million common stock repurchase program. Under the 2025 Supplemental Confirmation, the Company will pay an aggregate amount of $125 million to Citibank for an initial number of shares of the Company's common stock, par value $0.001 per share (the "Common Stock") at the beginning of the transaction. The Company plans to fund the repurchase with available cash on hand and/or borrowing from its credit facility. The ultimate number of shares of Common Stock that the Company will repurchase under the 2025 Supplemental Confirmation will be based on the average of the daily volume-weighted average prices of the Common Stock during the term of the 2025 Supplemental Confirmation, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. At final settlement, Citibank may be required to deliver additional shares of Common Stock to the Company or, under certain circumstances, the Company may be required to make a cash payment or deliver shares of Common Stock, at its election, to Citibank.

The ASR Agreement contains the principal terms and provisions governing the accelerated share repurchase, including, but not limited to, the mechanism used to determine the number of shares of Common Stock that will be delivered, the required timing of delivery of the shares, the circumstances under which adjustments may be made to the transactions, the circumstances under which the transaction may be terminated prior to its scheduled maturity and various acknowledgments, representations and warranties made by the Company and Citibank to one another.

From time to time, Citibank and/or its affiliates have directly and indirectly engaged, and may engage in the future, in investment and/or commercial banking transactions with the Company for which Citibank has received, or may receive, customary compensation, fees and expense reimbursement.

The foregoing description of the ASR Agreement does not purport to be complete and is qualified in its entirety by reference to the Master ASR Confirmation, which was filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 18, 2024.

**Item 2.02. Results of Operations and Financial Condition.**

On July 29, 2025, the Company reported its results of operations for the three months ended June 30, 2025. A copy of the press release issued by the Company concerning the foregoing is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 **Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 99.1 | <u>[Press Release, dated July 29, 2025 (furnished pursuant to Item 2.02).](exlq225pressrelease.htm)</u> |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **EXLSERVICE HOLDINGS, INC.**<br>(Registrant) | **EXLSERVICE HOLDINGS, INC.**<br>(Registrant) |
| July 29, 2025 | By: | /s/ Maurizio Nicolelli |
|  | Name: | Maurizio Nicolelli |
|  | Title: | Chief Financial Officer |

---

## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;**Exhibit 99.1**

**EXL REPORTS 2025 SECOND QUARTER RESULTS**

***2025 Second Quarter Revenue of $514.5 Million, up 14.7% year-over-year***

***Q2 Diluted EPS (GAAP) of $0.40, up 43.9% from $0.28 in Q2 of 2024***

***Q2 Adjusted Diluted EPS (Non-GAAP)*** <sup>(1)</sup> ***of $0.49, up 20.3% from $0.40 in Q2 of 2024***

**NEW YORK** – **July 29, 2025** (GLOBE NEWSWIRE) - ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended June 30, 2025.

Chairman and Chief Executive Officer Rohit Kapoor said, "I am pleased to report another strong quarter as we delivered revenue growth of 15% and increased our adjusted diluted EPS by 20%. Our sustained double-digit growth demonstrates the strength of our competitive position as a global data and AI company. EXL's recognized leadership in embedding AI in the workflow is resonating strongly with our clients and fueling our growth."

Chief Financial Officer Maurizio Nicolelli said, "While we remain prudent in our outlook, our strong momentum gives us confidence to raise our revenue and adjusted diluted EPS guidance for the year. We now expect revenue to be in the range of $2.050 billion to $2.070 billion, up from our prior guidance of $2.035 billion to $2.065 billion. This represents 12% to 13% year-over-year growth on both a reported and constant currency basis. We now expect our adjusted diluted earnings per share for 2025 to be in the range of $1.86 to $1.90, up from our prior guidance of $1.83 to $1.89, representing a 13% to 15% increase over 2024, as we continue to accelerate our data and AI investments to generate future growth."

***__________________________________________________________***

(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 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue for the quarter ended June 30, 2025, increased to $514.5 million compared to $448.4 million for the second quarter of 2024, an increase of 14.7% on a reported basis and 14.6% on a constant currency basis. Revenue increased by 2.7% sequentially on a reported basis and 2.2% on a constant currency basis, from the first quarter of 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Revenue** | **Gross Margin** | **Gross Margin** | **Gross Margin** |
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** |
| | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** |
|<br><br>**Reportable Segments** <sup>(1)</sup> | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** |
| | **(dollars in millions)** | **(dollars in millions)** | **(dollars in millions)** | | | |
| Insurance | $172.2 | $158.5 | $172.0 | 34.8% | 34.0% | 36.6% |
| Healthcare and Life Sciences | 129.5 | 106.1 | 125.6 | 43.5% | 43.4% | 43.9% |
| Banking, Capital Markets and Diversified Industries | 121.1 | 104.6 | 117.7 | 37.8% | 37.6% | 37.3% |
| International Growth Markets | 91.7 | 79.2 | 85.7 | 35.1% | 34.1% | 36.6% |
| **Total Revenue, net** | $**514.5** | $**448.4** | $**501.0** | **37.7%** | **37.1%** | **38.6%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> In the first quarter of 2025, the Company implemented operational and structural changes to accelerate the execution of its data and AI-led strategy. Under the new structure, beginning with the three months ended March 31, 2025, the Company reports its financial performance based on new segments presented in the table above. In conjunction with the new reporting structure, the Company has recast prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income margin for the quarter ended June 30, 2025 was 15.8%, compared to 13.7% for the second quarter of 2024 and 15.7% for the first quarter of 2025. Adjusted operating income margin for the quarter ended June 30, 2025 was 19.6%, compared to 19.8% for the second quarter of 2024 and 20.1% for the first quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share for the quarter ended June 30, 2025 was $0.40, compared to $0.28 for the second quarter of 2024 and $0.40 for the first quarter of 2025. Adjusted diluted earnings per share for the quarter ended June 30, 2025 was $0.49, compared to $0.40 for the second quarter of 2024 and $0.48 for the first quarter of 2025.

------

**Business Highlights: Second Quarter 2025**

• Won 13 new clients in the second quarter of 2025

• Named a World Economic Forum (WEF) 2025 MINDS (Meaningful, Intelligent, Novel, Deployable Solutions) Winner for Code Harbor™, an AI-powered platform modernization solution. The award is part of the WEF AI Governance Alliance to identify AI applications that are delivering real impact at scale

• Named a Leader and Star Performer in the Everest Group Payment Integrity Solutions PEAK Matrix<sup>®</sup> Assessment 2025, based on EXL's diverse, adaptable payment integrity solution engagement models, which are integrated with generative AI, natural language processing and machine learning as key drivers of their performance

• Recognized as a Microsoft Solutions Partner for Data and AI. This designation acknowledges EXL's advanced capabilities in helping clients manage data across systems and build transformative analytics and AI solutions on Microsoft platforms

• Expanded partnership with Databricks to deploy a generative AI-enabled SAS to Databricks Data Intelligence Platform migration solution. Leveraging EXL's Code Harbor™, the solution helps enterprises streamline their transition from SAS to Databricks to support enhanced cloud modernization initiatives

• Achieved the Amazon Web Services (AWS) Generative AI Competency within the AWS Partner Network. The designation recognizes EXL as a trusted AWS Partner with deep domain expertise and proven success in delivering generative AI solutions, positioning the company among a select group of organizations recommended by AWS to customers seeking advanced generative AI capabilities

• EXL entered into an accelerated share repurchase agreement on July 29 to repurchase $125 million of the company's common stock as part of its current $500 million stock repurchase program

**2025 Guidance**

Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 86.0, U.K. pound sterling to U.S. dollar exchange rate of 1.35, U.S. dollar to the Philippine peso exchange rate of 56.5 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $2.050 billion to $2.070 billion, representing an increase of 12% to 13% on both a reported and constant currency basis from 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted diluted earnings per share of $1.86 to $1.90, representing an increase of 13% to 15% from 2024.

***<u>Conference Call</u>***

ExlService Holdings, Inc. will host a conference call on Wednesday, July 30, 2025, at 10:00 A.M. ET to discuss the Company's quarterly 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 <u>ir.exlservice.com</u>, 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 <u>here</u>. 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 <u>ir.exlservice.com</u> for a period of twelve months.

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**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, banking and financial services, media and retail, 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 more than 61,000 employees spanning six continents. For more information, visit <u>www.exlservice.com.</u>

**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, 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 applicable law.*

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**EXLSERVICE HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)**

**(In thousands, except per share amount and share count)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues, net | $514460 | $448366 | $1015479 | $884873 |
| Cost of revenues <sup>(1)</sup> | 320272 | 282106 | 627977 | 555530 |
| **Gross profit** <sup>(1)</sup> | **194188** | **166260** | **387502** | **329343** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 59549 | 56457 | 118966 | 109700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses | 39446 | 35444 | 81371 | 71414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 14055 | 12910 | 27612 | 25256 |
| Total operating expenses | 113050 | 104811 | 227949 | 206370 |
| **Income from operations** | **81138** | **61449** | **159553** | **122973** |
| Foreign exchange gain, net | 2211 | 36 | 3403 | 395 |
| Interest expense | (4282) | (5328) | (8426) | (8619) |
| Other income, net | 5671 | 3550 | 10374 | 7502 |
| **Income before income tax expense and earnings from equity affiliates** | **84738** | **59707** | **164904** | **122251** |
| Income tax expense | 18546 | 13873 | 32042 | 27626 |
| **Income before earnings from equity affiliates** | **66192** | **45834** | **132862** | **94625** |
| Loss from equity-method investment | (141) | (9) | (250) | (37) |
| **Net income** | $**66051** | $**45825** | $**132612** | $**94588** |
| Earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.41 | $0.28 | $0.82 | $0.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.40 | $0.28 | $0.81 | $0.57 |
| Weighted average number of shares used in computing earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 162925484 | 162794138 | 162709034 | 163938263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 164193258 | 163961754 | 164376498 | 165344304 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1) Exclusive of depreciation and amortization expense.*

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**EXLSERVICE HOLDINGS, INC.**

**CONSOLIDATED BALANCE SHEETS (UNAUDITED)**

**(In thousands, except per share amount and share count)**

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **June 30, 2025** | **December 31, 2024** |
| **Assets** | | |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $149134 | $153355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 204160 | 187223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 11503 | 9972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 345470 | 304322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 148049 | 140317 |
| **Total current assets** | **858316** | **795189** |
| Property and equipment, net | 114103 | 101837 |
| Operating lease right-of-use assets | 73083 | 68784 |
| Restricted cash | 9888 | 8071 |
| Deferred tax assets, net | 117208 | 104747 |
| Goodwill | 420573 | 420387 |
| Other intangible assets, net | 42825 | 49331 |
| Long-term investments | 7516 | 13972 |
| Other assets | 64991 | 56085 |
| **Total assets** | $**1708503** | $**1618403** |
| **Liabilities and stockholders' equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $5971 | $5884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term borrowings | 4886 | 4886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 21989 | 19264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued employee costs | 99535 | 129994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 121548 | 113597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 18374 | 16491 |
| **Total current liabilities** | **272303** | **290116** |
| Long-term borrowings, less current portion | 255155 | 283598 |
| Operating lease liabilities, less current portion | 62402 | 59851 |
| Deferred tax liabilities, net | 2216 | 1403 |
| Other non-current liabilities | 55477 | 53573 |
| **Total liabilities** | **647553** | **688541** |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 400,000,000 shares authorized, 207,810,635 shares issued and 161,829,331 shares outstanding as of June 30, 2025 and 206,510,587 shares issued and 161,801,212 shares outstanding as of December 31, 2024 | 207 | 206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 625984 | 588583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 1414572 | 1281960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (134434) | (154722) |
| **Total including shares held in treasury** | **1906329** | **1716027** |
| Less: 45,981,304 shares as of June 30, 2025 and 44,709,375 shares as of December 31, 2024, held in treasury, at cost | (845379) | (786165) |
| **Total stockholders' equity** | **1060950** | **929862** |
| **Total liabilities and stockholders' equity** | $**1708503** | $**1618403** |

---

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**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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Adjusted operating income and adjusted operating income margin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Adjusted EBITDA and adjusted EBITDA margin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Adjusted net income and adjusted diluted earnings per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Revenue growth on 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, provision for restructuring and litigation settlement matters, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, 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.

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.

EXL's primary exchange rate exposure is with the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 83.42 during the quarter ended June 30, 2024 to 85.27 during the quarter ended June 30, 2025, representing a depreciation of 2.2% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso decreased from 58.29 during the quarter ended June 30, 2024 to 55.97 during the quarter ended June 30, 2025, representing an appreciation of 4.0% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar increased from 1.26 during the quarter ended June 30, 2024 to 1.35 during the quarter ended June 30, 2025, representing an appreciation of 6.9% against the U.S. dollar. The average exchange

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rate of the U.S. dollar against the South African rand decreased from 18.53 during the quarter ended June 30, 2024 to 18.12 during the quarter ended June 30, 2025, representing an appreciation of 2.2% against the U.S. dollar.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended June 30, 2025 and June 30, 2024, and the three months ended March 31, 2025:

**Reconciliation of Adjusted Operating Income and Adjusted EBITDA** 

(Amounts in thousands)

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| | | | |
|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Three months ended** |
|  | **June 30,** | **June 30,** | **March 31,** |
|  | **2025** | **2024** | **2025** |
| **Net income (GAAP)** | $**66051** | $**45825** | $**66561** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Income tax expense | 18546 | 13873 | 13496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net | (3459) | 1751 | (1642) |
| **Income from operations (GAAP)** | $**81138** | $**61449** | $**78415** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Stock-based compensation expense | 16392 | 18095 | 19187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Amortization of acquisition-related intangibles | 3277 | 3077 | 3246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Restructuring and litigation settlement costs (a) |  | 6174 |  |
| **Adjusted operating income (Non-GAAP)** | $**100807** | $**88795** | $**100848** |
| *Adjusted operating income margin as a % of revenue (Non-GAAP)* | *19.6 %* | *19.8 %* | *20.1 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Depreciation on long-lived assets | 10778 | 9833 | 10311 |
| **Adjusted EBITDA (Non-GAAP)** | $**111585** | $**98628** | $**111159** |
| *Adjusted EBITDA margin as a % of revenue (Non-GAAP)* | *21.7 %* | *22.0 %* | *22.2 %* |

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&nbsp;&nbsp;&nbsp;&nbsp;(a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and litigation settlement costs and associated legal fees of $1,412 during the three months ended June 30, 2024.

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**Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share** 

(Amounts in thousands, except per share data)

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| | | | |
|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** |
| | **June 30,** | **June 30,** | **March 31,** |
| | **2025** | **2024** | **2025** |
| **Net income (GAAP)** | $**66051** | $**45825** | $**66561** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Stock-based compensation expense | 16392 | 18095 | 19187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Amortization of acquisition-related intangibles | 3277 | 3077 | 3246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;add: Restructuring and litigation settlement costs (a) |  | 6174 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subtract: Acquisition-related adjustments | (945) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subtract: Tax impact on stock-based compensation expense (b) | (4211) | (4619) | (9105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subtract: Tax impact on amortization of acquisition-related intangibles | (807) | (765) | (799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subtract: Tax impact on restructuring and litigation settlement costs |  | (1588) |  |
| **Adjusted net income (Non-GAAP)** | $**79757** | $**66199** | $**79090** |
| **Adjusted diluted earnings per share (Non-GAAP)** | $**0.49** | $**0.40** | $**0.48** |

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&nbsp;&nbsp;&nbsp;&nbsp;(a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and litigation settlement costs and associated legal fees of $1,412 during the three months ended June 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Tax impact includes $203 and $18 during the three months ended June 30, 2025 and 2024 respectively, and $14,526 during the three months ended March 31, 2025, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.

Contacts:

**Investor Relations**

John Kristoff

Vice President, Investor Relations

+1 212 209 4613

<u>ir@exlservice.com</u>

**Media - US**

Keith Little

Assistant Vice President, Media Relations

+1 703 598 0980

<u>media.relations@exlservice.com</u>

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