AI-extracted from the 10-Q filed 2026-07-28 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
EXLS grew Q2 FY2026 revenue 15.6% YoY to $594.8M with gross margin up 30bps to 38.0%, but net income fell 2.3% YoY as the effective tax rate rose to 23.1% and SG&A outpaced revenue growth.
Biggest Revenue Drivers
Insurance$197.8M+14.9% YoY
Driven by expansion of business from existing clients (13.7%) and new client wins (1.2%)
Healthcare and Life Sciences$158.0M+22.0% YoY
Driven by expansion of business from existing clients (21.0%) and new client wins (1.0%)
Biggest Revenue Drivers
Total revenue: $594.8M+15.6% YoY
Insurance$197.8M+14.9% YoY
Driven by expansion of business from existing clients (13.7%) and new client wins (1.2%)
Healthcare and Life Sciences$158.0M+22.0% YoY
Driven by expansion of business from existing clients (21.0%) and new client wins (1.0%)
Banking, Capital Markets and Diversified Industries$133.9M+10.5% YoY
Driven by expansion of business from existing clients (5.2%) and new client wins (5.3%)
International Growth Markets$105.1M+14.7% YoY
Driven by existing client expansion (12.1%) and new clients (4.2%), partly offset by FX loss (1.6%)
Largest Expense Items
Cost of revenues$368.8M+15.2% YoY
Higher employee-related costs of $44.9M from headcount growth and wage inflation, plus higher technology costs of $8.4M, partly offset by $9.2M FX gain net of hedging
General and administrative expenses$74.4M+25.0% YoY
Higher employee-related costs of $19.7M, iMerit acquisition-related expenses of $1.9M, and increased digital/generative AI investment of $1.8M
Selling and marketing expenses$49.6M+25.8% YoY
Part of SG&A increase driven by higher headcount and wage inflation
Depreciation and amortization$14.6M+3.9% YoY
Due to investments in infrastructure, technology assets and digital capabilities
Margins: Gross margin rose 30bps YoY to 38.0%, primarily driven by higher revenues and operational efficiencies, partially offset by lower volumes from certain existing clients. Operating margin declined to 14.7% from 15.8% as SG&A expenses (20.9% of revenue vs 19.2%) outpaced revenue growth.
Watch Items from the Filing
Top ten clients accounted for 34.1% of total revenue in Q2 FY2026 (up from 33.5% in Q2 FY2025); the company states loss of any top-ten client could have a material adverse effect.
Effective tax rate rose to 23.1% from 21.9% YoY due to higher non-deductible expenses and lower excess tax benefits from stock-based compensation, contributing to a 2.3% YoY decline in net income despite revenue growth.
On June 22, 2026 the company agreed to acquire iMerit Inc. for $170M upfront cash plus up to $140M in earnouts over two years, expanding AI model training capabilities; expected to close Q3 2026.
Completed a $125M accelerated share repurchase (settled May 13, 2026) and authorized a new $500M buyback program in February 2026, with $350.1M remaining as of June 30, 2026.
Ongoing Indian transfer pricing tax disputes with an aggregate demand of $44.4M as of June 30, 2026 (up from $42.2M at year-end 2025), though the company has not accrued liabilities, believing its position will be sustained.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Mehta Kamini HDirectorGrant or award · Jul 16, 2026
Jetley VivekPresident of EXLGrant or award · Jun 30, 2026
Nicolelli MaurizioExecutive Vice President & CFOGrant or award · Jun 30, 2026
Kini NarasimhaExecutive Vice PresidentGrant or award · Jun 30, 2026
Fibig AndreasDirectorGrant or award · Jun 16, 2026
Pipes KristyDirectorGrant or award · Jun 16, 2026
Geraghty PatrickDirectorGrant or award · Jun 16, 2026
Bartlett Thomas ADirectorGrant or award · Jun 16, 2026
Congress trading in EXLS
2 transactions in EXLS reported by 1 member of Congress under the STOCK Act, most recent trade Jan 4, 2024. Reported transactions, not recommendations.
About ExlService Holdings, Inc. (EXLS): stock profile, AI score and financials
ExlService Holdings, Inc. (EXLS) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores EXLS at 64.6/100 on a composite quality score built from its SEC filings, placing it at rank #524 of 2,925 stocks — the top 25% of the AI-ranked universe. EXLS scores in the top quartile across balance sheet strength (92.4). Shareholder dilution risk is elevated at 27.9/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), ExlService Holdings, Inc. reports quarterly revenue of $594.8M, net income of $64.5M, an operating margin of 14.7%. Top institutional holders of EXLS by reported 13-F value include BlackRock, FMR, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. EXLS trades on the Nasdaq exchange and files with the SEC under CIK 1297989. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate EXLS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ExlService Holdings, Inc. directly from SEC EDGAR.