Exlservice (EXLS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $501 million, up 14.8% year-over-year, with adjusted EPS of $0.48, up 26.9%–27% year-over-year, and net income of $66.6 million, up 36.5% from Q1 2024.

• Data and AI-led revenue grew 16% year-over-year, now representing 53%–53.5% of total revenue.

• Launched eXcelerate.ai, an agentic AI platform, with strong client adoption and over 15 proprietary AI agents deployed.

• Ten new clients were added in Q1, with employee count rising by 1,100 to 60,652 and attrition at 22.4%.

• Company realigned its operating structure into four new segments and integrated analytics as a core capability.

Financial highlights

• Q1 revenue was $501 million, up 14.8% year-over-year (reported) and 15.1% in constant currency; sequential growth was 4.1%–4.3%.

• Adjusted operating margin was 20.1%, up 120 basis points year-over-year; adjusted EBITDA margin was 22.2%.

• Net income (GAAP) for Q1 was $66.6 million, up from $48.8 million in Q1 2024.

• Cash flow from operations was $3–$3.2 million, reversing a prior year deficit.

• Gross margin improved to 38.6% from 37.4% year-over-year.

Outlook and guidance

• 2025 revenue guidance raised to $2.035–$2.065 billion, representing 11–12% reported and 11–13% constant currency growth.

• Adjusted EPS guidance for 2025 is $1.83–$1.89, up 11–14% year-over-year.

• 87% of 2025 revenue is already committed, with 95% visibility at the midpoint of guidance.

• Full-year capital expenditures expected to be $50–$55 million.

• Guidance based on favorable currency rates and continued business momentum.