Q4 2025 Exlservice Holdings Inc Earnings Call Transcript
Key Points
- ExlService Holdings Inc (EXLS) reported a strong quarter, exceeding expectations for both revenue and EPS for Q4 and the full year 2025.
- Revenue increased by 14% to nearly $2.1 billion for the full year, with adjusted EPS growing 18% year-over-year.
- The data and AI-led revenue grew 21% year-over-year, now representing 57% of total revenue.
- The Healthcare and Life Sciences segment was the fastest-growing segment with 26% year-over-year growth.
- EXLS has a strong pipeline and high renewal rates, with more than 75% of revenue being recurring or annuity-like, providing revenue stability and predictability.
- SG&A expenses as a percentage of revenue increased by 130 basis points year-over-year to 21.2%, driven by investments in sales and marketing.
- The adjusted operating margin for Q4 was flat year-over-year at 18.8%, indicating no margin expansion.
- The implementation of the Indian labor code is expected to result in a $0.02 to $0.03 dilution to adjusted EPS for 2026.
- The company's guidance for 2026 revenue growth is 9% to 11%, which is lower than the previous year's guidance.
- EXLS's data and AI-led business is constrained for growth due to talent shortages, which the company is actively working to address.
Inc. fourth quarter 2025 earnings conference call. (Operator Instructions). Also as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now turn the call over to Andrew Tout, SVP, Investor Relations and Capital Markets.
Thanks, Mariana. hello, and thank you for joining EXL's fourth quarter and full year 2025 financial results conference call. My name is Andrew, and I'm the new SVP of Investor Relations and Capital Markets for EXL.
On the call with me today are Rohit Kapoor, Chairman and Chief Executive Officer; and Vivek Jetley, President and Head of Insurance, Healthcare and Life Sciences. Maurizio Nicolelli, Chief Financial Officer, will not be on today's call as he is tending to a family matter.
We hope you've had an opportunity to review the fourth quarter earnings press release we issued yesterday afternoon.
We have also posted a slide deck and investor fact sheet on our Investor Relations website. As a reminder, some of the matters
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