Exlservice (EXLS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $542.6M, up 12.7% year-over-year; full-year revenue was $2.09B, up 13.6% year-over-year, with adjusted EPS up 18% to $1.95 and strong execution of data and AI strategy.

• Q4 adjusted EPS was $0.50, up 15% year-over-year; GAAP EPS was $0.38, up 21.8%.

• Significant Q4 client wins and 21 new clients added in Q4, 65 for the full year, highlight robust market demand for AI-driven transformation.

• Launched EXLdata.ai, embedded AI into core platforms, and announced key industry collaborations.

• Recognized as a leader in AI/ML and awarded 10 new U.S. patents in the past 12 months.

Financial highlights

• Q4 revenue: $542.6M, up 12.7% year-over-year; full-year revenue: $2.09B, up 13.6%.

• Q4 adjusted EBITDA margin: 21.2%; full-year adjusted EBITDA margin: 21.7%.

• Q4 adjusted net income: $80.1M; full-year adjusted net income: $316.9M.

• Q4 adjusted operating margin: 18.8%; full-year: 19.5%, up 10 bps.

• Cash flow from operations in 2025: $351M, up 30.6% year-over-year; cash and investments at year-end: $331M.

Outlook and guidance

• 2026 revenue guidance: $2.275B–$2.315B, representing 9%–11% constant currency organic growth.

• 2026 adjusted diluted EPS guidance: $2.14–$2.19, up 10%–12% year-over-year.

• Effective tax rate expected at 21%–22%; capital expenditures projected at $50–$55M.

• $500M stock repurchase program authorized for two years starting February 28, 2026.