Cash flow generation remains inconsistent, evidenced by a free cash flow margin that swung from a peak of 20.6% in 2024Q3 to a negative 2.0% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | 349.19M | 350.72M | 268.52M | 211.2M | 166.14M | 184.39M | 202.97M | 168.42M | 92.44M | 113.14M | 100.26M | 96.69M | 66.66M | 82.79M | 65.78M | 56.23M | 36.51M | 35.7M | 34.37M | 23.43M | 19.79M | 13.14M | 9.88M |
| Operating CF Margin % | - | 16.8% | 14.61% | 12.95% | 11.77% | 16.43% | 21.18% | 16.99% | 10.47% | 14.84% | 14.62% | 15.38% | 13.35% | 17.3% | 14.85% | 15.6% | 14.44% | 18.69% | 18.92% | 13.02% | 16.25% | 17.77% | 16.34% |
| Operating CF Growth % | 20.04% | 30.61% | 27.14% | 27.12% | -9.9% | -9.16% | 20.52% | 82.2% | -18.3% | 12.85% | 3.69% | 45.05% | -19.49% | 25.86% | 16.98% | 54.04% | 2.27% | 3.85% | 46.74% | 18.39% | 50.55% | 32.99% | - |
| Net Income | 251.54M | 251.02M | 198.3M | 184.56M | 142.97M | 114.76M | 89.48M | 67.66M | 56.73M | 48.89M | 61.73M | 51.56M | 32.45M | 48.1M | 41.84M | 34.78M | 26.59M | 15.79M | 14.41M | 27.04M | 14.06M | 7.06M | 5.38M |
| Depreciation & Amortization | 61.26M | 59.25M | 55.22M | 70.68M | 77.89M | 75.98M | 77.66M | 79.53M | 48.72M | 38.98M | 34.58M | 31.46M | 28.03M | 24.92M | 25.62M | 22.99M | 15.84M | 11.4M | 16.43M | 14.8M | 11.03M | 6.2M | 4.64M |
| Stock-Based Compensation | 59.24M | 79.47M | 72.66M | 58.44M | 49.37M | 38.62M | 28.23M | 26.07M | 23.9M | 23.04M | 19.77M | 16.05M | 11.01M | 11.83M | 9.42M | 9.48M | 8.55M | 7.23M | 0 | 4.31T | 1.97T | 0 | 0 |
| Deferred Taxes | -9.81M | -15.06M | -19.89M | -31.74M | -19.55M | -20.33M | 2.7M | -12.35M | -625K | 731K | -3.38M | 2.24M | 76K | 2.48M | 4.73M | -1.71M | -2.38M | -8.4M | -627.05K | -3.38M | -2.65M | -1.94M | -101.06K |
| Other Non-Cash Items | -70.54M | 12.81M | 3.43M | 20.77M | -8.41M | 15.66M | -4.17M | -4.66M | 4.32M | 4.59M | -9.49M | -5.53M | -1.31M | -7.36M | -3.03M | -8.12M | 950K | 245K | 429.9K | -4.31T | -1.97T | 425.81K | 360.49K |
| Working Capital Changes | 57.5M | -36.76M | -41.2M | -91.5M | -76.12M | -40.31M | 9.08M | 12.17M | -40.6M | -3.1M | -2.95M | 910K | -3.59M | 2.83M | -12.79M | -1.2M | -13.04M | 9.42M | 1.34M | -13.9M | -4.08M | 975.6K | -1.2M |
| Change in Receivables | -47.82M | -35.99M | 4.65M | -49.24M | -68.12M | -37.68M | 24.7M | -7.09M | -10.05M | -20.48M | -18.06M | -9.09M | 3.26M | -5.68M | -8.09M | -5.11M | -8.44M | -287K | 0 | -12.42T | -4.93T | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 10.72M | -34.08M | 12.45M | -25.27M | 22.32M | 14.15M | 8.17M | -5.01M | 8.24M | -3.97M | 4.95M | -1.27M | 6.38M | 0 | 11.04T | 4.24T | 0 | 0 |
| Change in Payables | 6.79M | 11.23M | 20.51M | -2.76M | 2.38M | -614K | 243K | 134K | -360K | 1.71M | -2.63M | 44K | -146K | -375K | 3.02M | -840K | -145K | 1.21M | 0 | 1.38T | 694.18B | 0 | 0 |
| Cash from Investing | 17.03M | -49.26M | -119.1M | -12M | -96.55M | -114.27M | -18.32M | -51.38M | -277.49M | -222.74M | -54.67M | -73.54M | -88.26M | -17.54M | -54.83M | -105.75M | -60.97M | -17.33M | -15.99M | -8.97M | -12M | -7.13M | -12.34M |
| Capital Expenditures | -52.59M | -52.6M | -46.26M | -52.8M | -44.84M | -37.25M | -42.22M | -40.14M | -40.44M | -35.15M | -25.85M | -25.59M | -27.68M | -15.92M | -18.8M | -19.47M | -19.86M | -11.42M | -14.83M | -8.71M | -10.39M | -7.13M | -12.34M |
| CapEx % of Revenue | 2.44% | 2.52% | 2.52% | 3.24% | 3.18% | 3.32% | 4.41% | 4.05% | 4.58% | 4.61% | 3.77% | 4.07% | 5.54% | 3.33% | 4.25% | 5.4% | 7.86% | 5.98% | 8.16% | 4.84% | 8.54% | 9.64% | 20.4% |
| Acquisitions | 85K | 0 | -24.9M | -600K | -3.87M | -76.83M | -700K | -241K | -231.83M | -26.3M | -28.67M | -44.27M | -58.19M | -1.18M | -37.5M | -80.98M | -42.14M | -2.08M | -2.16M | 0 | -1.61M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 282.74M | 316.85M | 215K | 1.34M | 266K | 1.3M | 916K | 0 | -4.87M | -164.28M | -151K | -3.69M | -2.4M | -436K | -36.03M | 0 | 1.45M | 1.45M | 998.44K | 0 | 0 | 0 | 0 |
| Cash from Financing | -360.77M | -312.76M | -119.1M | -181.45M | -81.72M | -146.88M | -89.56M | -93.08M | 197.78M | -20.48M | -32.73M | 9.84M | 52.95M | -15.71M | 9.9M | 24.87M | 2.95M | 470K | -240.72K | 1.96M | 52.88M | -90.75K | 12.43M |
| Debt Issued (Net) | -9.14M | 9.49M | 87.8M | -50.17M | -10.14M | -29.23M | -11.12M | -52.7M | 239.49M | 14.42M | -25.35M | 19.21M | 48.63M | -1.51M | -1.64M | -1.33M | -88K | -114K | -132.71K | -153.3K | -10.59M | -103.11K | -117.68K |
| Equity Issued (Net) | -307.02M | -322.25M | -202.9M | -126.28M | -71.58M | -117.65M | -78.45M | -40.38M | -41.71M | -34.89M | -11.7M | -10.82M | 3.14M | -16.13M | 9.27M | 24.99M | 2.93M | 927K | 33.3K | 1.36M | 63.28M | 12.35K | 12.55M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -617.33B | 0 | 0 | 0 | 0 |
| Share Repurchases | -310.5M | -328.49M | -207.93M | -131.85M | -72.64M | -118.36M | -79.95M | -41.36M | -43.11M | -43.45M | -18.2M | -14.2M | -3.32M | -21.62M | -331K | -1.62M | -93K | -73K | -586.76K | -280.42K | -6.71M | 0 | -26.06K |
| Other Financing | -44.6M | 0 | -4M | -5M | 0 | 0 | 0 | 0 | 0 | 0 | 4.33M | 1.46M | 1.18M | 1.93M | 2.27M | 1.21M | 107K | -343K | -141.31K | 752.86K | 190.14K | 0 | 0 |
| Net Change in Cash | 6.3M | -4.61M | 22.31M | 17.45M | -17.95M | -81.71M | 98.6M | 23.13M | 11.02M | -126.53M | 9.81M | 29.3M | 29.41M | 44.88M | 102.68M | -110.48M | -20.87M | 19.9M | 9.88M | 101.4M | -64.21M | 65.3M | 0 |
| Free Cash Flow | 296.6M | 298.12M | 222.26M | 158.4M | 121.31M | 147.14M | 160.75M | 128.28M | 52M | 77.99M | 74.41M | 71.11M | 38.98M | 66.88M | 46.98M | 36.77M | 16.65M | 24.28M | 19.54M | 14.71M | 9.39M | 6.02M | -2.45M |
| FCF Margin % | 13.75% | 14.28% | 12.09% | 9.71% | 8.59% | 13.11% | 16.77% | 12.94% | 5.89% | 10.23% | 10.85% | 11.31% | 7.81% | 13.98% | 10.61% | 10.2% | 6.59% | 12.71% | 10.75% | 8.18% | 7.71% | 8.14% | -4.06% |
| FCF Growth % | 20.71% | 34.13% | 40.32% | 30.58% | -17.56% | -8.47% | 25.31% | 146.71% | -33.32% | 4.81% | 4.64% | 82.41% | -41.71% | 42.36% | 27.77% | 120.88% | -31.44% | 24.25% | 32.81% | 56.63% | 56.13% | 345.12% | - |
| FCF per Share | 1.89 | 1.83 | 1.35 | 0.94 | 0.72 | 0.86 | 0.93 | 0.74 | 0.30 | 0.44 | 0.43 | 0.42 | 0.23 | 0.39 | 0.28 | 1.17 | 0.55 | 0.83 | 0.67 | 0.50 | 0.41 | 0.57 | -0.23 |
| FCF Conversion (FCF/Net Income) | 1.18x | 1.40x | 1.35x | 1.14x | 1.16x | 1.61x | 2.27x | 2.49x | 1.63x | 2.31x | 1.62x | 1.88x | 2.05x | 1.72x | 1.57x | 1.62x | 1.37x | 2.28x | 2.39x | 0.87x | 1.41x | 1.86x | 1.84x |
| Interest Paid | 4.43M | 0 | 19.6M | 13.89M | 8.19M | 6.59M | 7.63M | 10.65M | 4.72M | 1.12M | 1.18M | 1.19M | 355K | 592K | 826K | 803K | 43K | 22K | 52K | 0 | 0 | 0 | 0 |
| Taxes Paid | 33.37M | 0 | 106.41M | 104.88M | 57.06M | 50M | 20.57M | 19.09M | 18.51M | 19.13M | 15.67M | 11.51M | 11.2M | 8.59M | 13.78M | 14.54M | 12.81M | 4.84M | 4.2M | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in quarterly financial statements, EXLS exhibits significant volatility in cash conversion, with the OCF/NI ratio swinging from a low of 0.03 in 2026Q1 to a high of 2.08 in 2024Q3, suggesting that reported net income is frequently decoupled from actual cash generation.
The wide variance between net income and operating cash flow appears largely driven by periodic working capital swings rather than structural earnings quality issues. Investors should monitor whether this inconsistency reflects the timing of large-scale contract milestones or potential inefficiencies in the company's billing and collection cycles.
Based on the provided cash flow data, EXLS demonstrates a highly inconsistent free cash flow trajectory, with margins fluctuating from a negative 2.0% in 2026Q1 to a peak of 20.6% in 2024Q3, indicating that cash flow stability remains a challenge despite consistent top-line growth.
The sharp contraction in FCF margins during the first quarters of 2025 and 2026 suggests that seasonal working capital requirements or lumpy cash outflows periodically overwhelm the company's core profitability. This pattern warrants further investigation into whether these dips are recurring seasonal phenomena or indicative of underlying operational friction.
According to recent SEC filings, EXLS experiences substantial quarterly fluctuations in working capital, highlighted by a $96.8 million outflow in 2024Q1 and a $26.0 million inflow in 2024Q3, which significantly impacts the company's ability to maintain a predictable cash conversion cycle.
These large swings suggest that the company's cash flow is highly sensitive to the timing of client payments and potential inventory-like build-ups in its platform-based service delivery. Such volatility implies that the firm's liquidity position may be more vulnerable to client payment delays than its steady revenue growth would otherwise suggest.
As evidenced by historical financial data, EXLS prioritizes share repurchases over other forms of capital deployment, with buybacks reaching $159.2 million in 2025Q3, often occurring in periods where free cash flow generation is robust enough to support such significant returns to shareholders.
The company's reliance on buybacks as a primary capital allocation tool suggests a management preference for returning capital rather than pursuing large-scale acquisitions or aggressive debt reduction. Investors should monitor if this strategy limits the firm's flexibility to invest in R&D during periods of cash flow compression.
Quick answers to the most common questions about buying EXLS stock.
ExlService Holdings, Inc. (EXLS) generated $350.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ExlService Holdings, Inc. (EXLS) generated $298.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ExlService Holdings, Inc. (EXLS) spent $52.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, ExlService Holdings, Inc. (EXLS) spent $328.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.