Revenue growth accelerated to 15.6% YoY in Q2 2026, with gross margin expanding to 38.0% and operating margin improving to 14.7%, reflecting a favorable mix shift toward higher-value analytics.
ExlService Holdings, Inc. (EXLS) annual income statement — 22-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 2.34B | 2.09B | 1.84B | 1.63B | 1.41B | 1.12B | 958.43M | 991.35M | 883.11M | 762.31M | 685.99M | 628.49M | 499.28M | 478.45M | 442.93M | 360.54M | 252.75M | 191M | 181.71M | 179.89M | 121.77M | 73.95M | 60.47M |
| Revenue Growth % | 15.55% | 13.56% | 12.74% | 15.48% | 25.82% | 17.1% | -3.32% | 12.26% | 15.85% | 11.13% | 9.15% | 25.88% | 4.35% | 8.02% | 22.85% | 42.65% | 32.33% | 5.11% | 1.01% | 47.73% | 64.65% | 22.31% | - |
| Cost of Goods Sold | 1.44B | 1.29B | 1.15B | 1.02B | 896.6M | 690.93M | 623.94M | 655.49M | 584.86M | 495.59M | 447.96M | 402.92M | 332.54M | 290.94M | 271.88M | 219.99M | 151.28M | 109.39M | 112.44M | 113.72M | 73.84M | 47.6M | 38.72M |
| COGS % of Revenue | - | 61.63% | 62.41% | 62.73% | 63.5% | 61.56% | 65.1% | 66.12% | 66.23% | 65.01% | 65.3% | 64.11% | 66.6% | 60.81% | 61.38% | 61.02% | 59.85% | 57.27% | 61.88% | 63.22% | 60.64% | 64.36% | 64.03% |
| Gross Profit | 898.82M | 801.08M | 691.01M | 607.77M | 515.45M | 431.36M | 334.5M | 335.86M | 298.26M | 266.72M | 238.03M | 225.57M | 166.74M | 187.51M | 171.05M | 140.55M | 101.47M | 81.61M | 69.28M | 66.17M | 47.93M | 26.36M | 21.75M |
| Gross Margin % | 38.38% | 38.37% | 37.59% | 37.27% | 36.5% | 38.44% | 34.9% | 33.88% | 33.77% | 34.99% | 34.7% | 35.89% | 33.4% | 39.19% | 38.62% | 38.98% | 40.15% | 42.73% | 38.12% | 36.78% | 39.36% | 35.64% | 35.97% |
| Gross Profit Growth % | - | 15.93% | 13.7% | 17.91% | 19.49% | 28.96% | -0.4% | 12.61% | 11.82% | 12.05% | 5.52% | 35.28% | -11.08% | 9.62% | 21.7% | 38.52% | 24.34% | 17.8% | 4.7% | 38.05% | 81.86% | 21.17% | - |
| Operating Expenses | 552.82M | 487.33M | 427.39M | 369.01M | 323.29M | 275.48M | 224.48M | 259.4M | 248.44M | 194.44M | 173.78M | 158.23M | 132.7M | 120.09M | 113.82M | 99.24M | 74.94M | 57.2M | 53.61M | 48.94M | 32.86M | 20.77M | 16.45M |
| OpEx % of Revenue | - | 23.34% | 23.25% | 22.63% | 22.89% | 24.55% | 23.42% | 26.17% | 28.13% | 25.51% | 25.33% | 25.18% | 26.58% | 25.1% | 25.7% | 27.52% | 29.65% | 29.95% | 29.5% | 27.21% | 26.99% | 28.09% | 27.21% |
| Selling, General & Admin | 489M | 428.24M | 372.17M | 318.52M | 267M | 226.35M | 174.01M | 198.75M | 179.81M | 155.89M | 139.19M | 126.77M | 104.67M | 95.17M | 88.2M | 76.24M | 59.11M | 45.8M | 42.46M | 38.45M | 23.92M | 14.89M | 12.54M |
| SG&A % of Revenue | - | 20.51% | 20.24% | 19.53% | 18.91% | 20.17% | 18.16% | 20.05% | 20.36% | 20.45% | 20.29% | 20.17% | 20.97% | 19.89% | 19.91% | 21.15% | 23.39% | 23.98% | 23.36% | 21.37% | 19.64% | 20.13% | 20.74% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 59.08M | 55.22M | 50.49M | 56.28M | 49.13M | 50.46M | 60.65M | 68.62M | 38.55M | 34.58M | 31.46M | 28.03M | 24.92M | 25.62M | 22.99M | 15.84M | 11.4M | 11.16M | 10.49M | 8.94M | 5.89M | 3.91M |
| Operating Income | 346M | 313.75M | 263.62M | 238.75M | 192.16M | 155.88M | 110.02M | 76.45M | 49.82M | 72.72M | 64.5M | 67.34M | 34.04M | 67.42M | 57.23M | 41.32M | 26.52M | 24.4M | 15.66M | 17.23M | 15.07M | 5.58M | 5.3M |
| Operating Margin % | 14.78% | 15.03% | 14.34% | 14.64% | 13.61% | 13.89% | 11.48% | 7.71% | 5.64% | 9.54% | 9.4% | 10.71% | 6.82% | 14.09% | 12.92% | 11.46% | 10.49% | 12.78% | 8.62% | 9.58% | 12.38% | 7.55% | 8.77% |
| Operating Income Growth % | - | 19.02% | 10.41% | 24.25% | 23.27% | 41.68% | 43.91% | 53.46% | -31.49% | 12.76% | -4.23% | 97.83% | -49.51% | 17.8% | 38.52% | 55.78% | 8.7% | 55.77% | -9.07% | 14.31% | 170% | 5.32% | - |
| EBITDA | 415.88M | 373M | 318.84M | 309.22M | 270.05M | 231.34M | 187.68M | 155.98M | 98.54M | 111.71M | 99.08M | 98.81M | 62.07M | 92.34M | 82.86M | 64.31M | 42.36M | 35.81M | 26.82M | 32.03M | 26.1M | 11.78M | 9.94M |
| EBITDA Margin % | 17.76% | 17.87% | 17.34% | 18.96% | 19.12% | 20.61% | 19.58% | 15.73% | 11.16% | 14.65% | 14.44% | 15.72% | 12.43% | 19.3% | 18.71% | 17.84% | 16.76% | 18.75% | 14.76% | 17.8% | 21.43% | 15.93% | 16.45% |
| EBITDA Growth % | 4.98% | 16.99% | 3.11% | 14.51% | 16.73% | 23.26% | 20.32% | 58.29% | -11.79% | 12.75% | 0.27% | 59.19% | -32.78% | 11.44% | 28.83% | 51.83% | 18.3% | 33.5% | -16.25% | 22.72% | 121.47% | 18.5% | - |
| D&A (Non-Cash Add-back) | 69.88M | 59.25M | 55.22M | 70.47M | 77.89M | 75.46M | 77.66M | 79.53M | 48.72M | 38.98M | 34.58M | 31.46M | 28.03M | 24.92M | 25.62M | 22.99M | 15.84M | 11.4M | 11.16M | 14.8M | 11.03M | 6.2M | 4.64M |
| EBIT | 369.59M | 332.66M | 280.6M | 251.12M | 198.35M | 154.12M | 126.52M | 96.71M | 67.6M | 86.92M | 85.23M | 77.11M | 38.01M | 65.54M | 57.23M | 41.32M | 26.52M | 24.4M | 15.66M | 17.23M | 15.07M | 5.58M | 5.3M |
| Net Interest Income | -20.79M | -7.97M | -9.34M | -5.15M | -3.02M | -4.83M | -8.69M | -11.43M | -5.35M | -264K | 330K | 1.57M | 3.34M | 2.6M | 2M | 1.96M | 1.37M | 1.02M | 3.41M | 4.25M | 1.33M | -111.98K | -672.42K |
| Interest Income | 11.3M | 9.64M | 9.92M | 8.03M | 5.23M | 2.73M | 2.5M | 2.18M | 1.87M | 1.63M | 1.67M | 2.9M | 3.6M | 3.17M | 2M | 1.96M | 1.37M | 1.02M | 3.48M | 4.31M | 1.91M | 693.54K | 258.58K |
| Interest Expense | 32.09M | 17.61M | 19.26M | 13.18M | 8.25M | 7.56M | 11.19M | 13.61M | 7.23M | 1.89M | 1.34M | 1.34M | 263K | 564K | 0 | 0 | 0 | 0 | 70.71K | 55.57K | 579.7K | 805.52K | 931K |
| Other Income/Expense | -8.5M | 1.3M | -2.39M | -661K | -1.63M | -9.27M | 5.08M | 6.38M | 10.3M | 12.31M | 19.39M | 8.43M | 3.6M | -2.44M | -512K | 5.33M | 5.57M | 3.7M | -5.87M | 11.92M | 1.04M | 830.5K | 101.78K |
| Pretax Income | 337.5M | 315.05M | 261.23M | 238.09M | 190.53M | 146.61M | 115.1M | 82.83M | 60.12M | 85.03M | 83.88M | 75.78M | 37.64M | 64.98M | 56.72M | 46.65M | 32.09M | 28.1M | 9.8M | 29.15M | 16.11M | 6.41M | 5.4M |
| Pretax Margin % | 14.41% | 15.09% | 14.21% | 14.6% | 13.49% | 13.06% | 12.01% | 8.36% | 6.81% | 11.15% | 12.23% | 12.06% | 7.54% | 13.58% | 12.81% | 12.94% | 12.7% | 14.71% | 5.39% | 16.21% | 13.23% | 8.67% | 8.93% |
| Income Tax | 76.91M | 63.73M | 62.94M | 53.54M | 47.56M | 31.85M | 25.63M | 15.17M | 3.4M | 36.15M | 22.15M | 24.21M | 5.19M | 16.88M | 14.88M | 11.87M | 5.5M | 3.7M | -1.34M | 2.11M | 2.06M | -647.01K | 21.58K |
| Effective Tax Rate % | 22.79% | 20.23% | 24.09% | 22.49% | 24.96% | 21.72% | 22.26% | 18.32% | 5.65% | 42.51% | 26.41% | 31.95% | 13.8% | 25.98% | 26.24% | 25.44% | 17.13% | 13.18% | -13.68% | 7.23% | 12.75% | -10.09% | 0.4% |
| Net Income | 260.61M | 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 | 15.65M | 14.41M | 27.04M | 14.06M | 7.06M | 5.38M |
| Net Margin % | 11.13% | 12.02% | 10.79% | 11.32% | 10.12% | 10.23% | 9.34% | 6.83% | 6.42% | 6.41% | 9% | 8.2% | 6.5% | 10.05% | 9.45% | 9.65% | 10.52% | 8.2% | 7.93% | 15.03% | 11.54% | 9.55% | 8.9% |
| Net Income Growth % | 7.94% | 26.59% | 7.44% | 29.09% | 24.58% | 28.26% | 32.25% | 19.27% | 16.03% | -20.81% | 19.72% | 58.93% | -32.54% | 14.97% | 20.29% | 30.79% | 69.88% | 8.64% | -46.72% | 92.37% | 99.13% | 31.21% | - |
| Net Income (Continuing) | 260.56M | 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 | 24.4M | 11.14M | 27.04M | 14.06M | 7.06M | 5.38M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 250K | 224K | 193K | 179K | 0 | 2K | 25K | 23K | 20K | 13K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.71 | 1.54 | 1.21 | 1.10 | 0.85 | 0.67 | 0.52 | 0.39 | 0.32 | 0.28 | 0.36 | 0.30 | 0.19 | 0.28 | 0.25 | 1.10 | 0.88 | 0.53 | 0.49 | 0.93 | 0.58 | 0.66 | 0.51 |
| EPS Growth % | 14.29% | 27.27% | 10% | 29.41% | 26.87% | 28.85% | 33.33% | 21.88% | 14.29% | -22.22% | 20% | 57.89% | -32.14% | 12% | -77.27% | 25% | 66.04% | 8.16% | -47.31% | 60.34% | -12.12% | 29.41% | - |
| EPS (Basic) | - | 1.56 | 1.22 | 1.11 | 0.86 | 0.68 | 0.52 | 0.39 | 0.33 | 0.29 | 0.37 | 0.31 | 0.20 | 0.29 | 0.26 | 1.15 | 0.91 | 0.54 | 0.50 | 0.95 | 0.59 | 0.67 | 0.52 |
| Diluted Shares Outstanding | 152.57M | 162.48M | 164.32M | 168.16M | 169.17M | 171.22M | 172.78M | 173.66M | 175.15M | 175.86M | 172.82M | 170.89M | 168.99M | 169.36M | 166.02M | 31.55M | 30.39M | 29.42M | 29.21M | 29.19M | 23.03M | 10.65M | 10.53M |
| Basic Shares Outstanding | 151.78M | 161.03M | 162.72M | 166.34M | 166.65M | 167.75M | 171.37M | 171.75M | 172.26M | 175.55M | 172.44M | 170.75M | 168.18M | 169.21M | 165.86M | 30.26M | 29.28M | 28.96M | 28.81M | 28.48M | 22.86M | 10.6M | 10.42M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying EXLS stock.
For fiscal year 2025, ExlService Holdings, Inc. (EXLS) reported total revenue of $2.09B. This represents a 3352.6% increase compared to $60.5M in 2004.
ExlService Holdings, Inc. (EXLS) is profitable, generating $251.0M in net income for the fiscal year ending 2025 with a net profit margin of 12.0%.
ExlService Holdings, Inc. (EXLS) reported an operating income of $313.8M, resulting in an operating profit margin of 15.0%. This margin reflects the operational efficiency of the business before interest and taxes.
ExlService Holdings, Inc. (EXLS) generated $801.1M in gross profit for the year, representing a gross profit margin of 38.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Wage inflation in India
Metrics are mathematically derived from official filings.
Accelerating Growth on Data-Led Strategy
EXLS revenue growth accelerated to 15.6% YoY in Q2 2026, up from 10.7% a year earlier, reflecting sustained momentum in analytics and platform adoption, as per the latest quarterly report.
The sequential acceleration from 13.8% in Q1 2026 to 15.6% in Q2 2026 suggests that the company's investments in data and AI are translating into durable top-line expansion. This growth appears broad-based, with the Insurance and Healthcare segments providing a stable foundation while Analytics likely drives the incremental upside. The raised full-year guidance implies management's confidence in the sustainability of this trajectory, though investors should monitor whether the pace can be maintained as the base of comparison grows.
Gross Margin Expansion Through Mix Shift
Gross margin improved to 38.0% in Q2 2026 from 37.1% in Q2 2024, indicating a favorable mix shift toward higher-value analytics and platform services, as disclosed in financial statements.
The 90 basis point expansion in gross margin over two years suggests that EXLS is successfully moving away from pure labor arbitrage toward more intellectual property-driven offerings. This trend is supported by the integration of Generative AI into platforms like LifePRO, which may reduce the need for linear headcount growth. However, the pace of margin expansion is modest, and wage inflation in India could offset these gains if pricing adjustments lag.
Operating Leverage Emerging in SG&A
Operating margin rose to 14.7% in Q2 2026 from 13.7% in Q2 2024, as SG&A grew only 35% versus revenue growth of 33%, indicating improving overhead efficiency, per reported figures.
The fact that operating income grew faster than gross profit in the latest quarter (12.4% vs. 16.4% gross profit growth) suggests that SG&A is not scaling proportionally with revenue. This may indicate that the company is leveraging its existing delivery infrastructure and sales force to drive incremental revenue. However, the recent uptick in SG&A in Q2 2026 (to $124.1M from $116.3M in Q1) warrants monitoring, as it could reflect increased investment in AI capabilities that may pressure margins in the near term.
EPS Growth Outpacing Net Income
Adjusted diluted EPS grew 22% YoY in Q2 2026, outpacing net income growth of 16%, likely aided by buybacks and a lower share count, as per the earnings release.
The divergence between EPS growth and net income growth suggests that capital allocation decisions, such as share repurchases, are enhancing per-share metrics. However, stock-based compensation of $24.6M in Q2 2026 represents a significant non-cash expense that investors should add back when assessing true cash earnings. The tax rate appears stable, but any anomalies in other income or expenses could distort net income quality, so a closer look at the reconciliation between GAAP and adjusted figures is warranted.
Personnel Costs Drive Expense Base
COGS, primarily personnel costs, rose 15.1% YoY in Q2 2026, in line with revenue growth, while SG&A increased 25.4%, reflecting investments in sales and AI talent, as reported.
The cost structure remains heavily weighted toward variable labor costs, with gross margin hovering around 38% indicating that the company has not yet achieved the operating leverage seen in more product-centric models. The increase in SG&A in Q2 2026 suggests that EXLS is investing in go-to-market capabilities and specialized data science talent to support its analytics push. Investors should monitor whether these investments yield higher revenue growth or if they simply inflate the cost base without commensurate returns.
2024-2026: Analytics-Driven Inflection
The period from Q1 2024 to Q2 2026 marks a clear inflection, with revenue growth accelerating from 9.0% to 15.6% and operating margin expanding from 14.1% to 14.7%, based on quarterly data.
This inflection appears to be driven by the company's strategic pivot toward data-led services and the integration of AI into its platforms, which has allowed it to differentiate from traditional BPO peers. The consistent improvement in revenue growth and margin stability during this period suggests that the business model is gaining traction. However, the sustainability of this inflection depends on the company's ability to continue innovating and managing wage inflation in its delivery centers.
Wage Inflation and AI Disruption Risks
Despite strong growth, wage inflation in India and the potential for Generative AI to disrupt headcount-based revenue models pose risks to EXLS's margin expansion, as noted in recent filings.
Short-sellers might argue that EXLS's reliance on labor arbitrage makes it vulnerable to wage inflation, which could compress margins if pricing does not keep pace. Additionally, the market may be overestimating the company's ability to benefit from AI, as the technology could also enable clients to bring processes in-house or switch to lower-cost providers. The recent EPS beat suggests that management is mitigating these risks for now, but the long-term sustainability of the growth and margin profile remains uncertain.