$EXLS

ExlService Holdings, Inc.

CIK:0001297989|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Revenues, net

$ 594,763

$ 514,460

$ 1,165,114

$ 1,015,479

Cost of revenues

^[1]

368,800

320,272

717,070

627,977

Gross profit

^[1]

225,963

194,188

448,044

387,502

Operating expenses:

General and administrative expenses

74,436

59,549

143,487

118,966

Selling and marketing expenses

49,628

39,446

96,829

81,371

Depreciation and amortization expense

14,604

14,055

28,607

27,612

Total operating expenses

138,668

113,050

268,923

227,949

Income from operations

87,295

81,138

179,121

159,553

Foreign exchange gain, net

1,609

2,211

2,744

3,403

Interest expense

(5,068)

(4,282)

(9,019)

(8,426)

Other income, net

130

5,671

2,521

10,374

Income before income tax expense and earnings from equity affiliates

83,966

84,738

175,367

164,904

Income tax expense

19,426

18,546

43,744

32,042

Income before earnings from equity affiliates

64,540

66,192

131,623

132,862

Loss from equity-method investment

(29)

(141)

(31)

(250)

Net income

$ 64,511

$ 66,051

$ 131,592

$ 132,612

Earnings per share:

Basic (in dollars per share)

$ 0.42

$ 0.41

$ 0.85

$ 0.82

Diluted (in dollars per share)

$ 0.42

$ 0.40

$ 0.85

$ 0.81

Weighted average number of shares used in computing earnings per share:

Basic (in shares)

152,554,401

162,925,484

154,292,120

162,709,034

Diluted (in shares)

152,831,994

164,193,258

154,858,444

164,376,498

[1]	Exclusive of depreciation and amortization expense.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 131,592	$ 132,612
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	28,473	27,689
Stock-based compensation expense	46,732	35,579
Reduction in the carrying amount of operating lease right-of-use assets	14,018	12,489
Fair value mark-to-market on investments	(3,054)	(1,304)
Unrealized foreign currency exchange (gain)/loss, net	(11,412)	(3,314)
Deferred income tax benefit	(4,930)	(15,605)
Others, net	4,315	1,581
Change in operating assets and liabilities:
Accounts receivable	(93,298)	(38,312)
Other current and non-current assets	(27,781)	(10,434)
Income taxes payable, net	31,392	4,202
Deferred revenue	7,303	2,426
Accrued employee costs	(29,637)	(31,278)
Accounts payable, accrued expenses and other liabilities	7,940	8,539
Operating lease liabilities	(12,042)	(12,250)
Net cash provided by operating activities	89,611	112,620
Cash flows from investing activities:
Purchases of property and equipment	(27,440)	(27,366)
Proceeds from sale of property and equipment	166	180
Purchases of investments	(137,311)	(144,935)
Proceeds from redemption of investments	158,999	136,434
Investment in equity affiliate	(600)	(600)
Net cash used for investing activities	(6,186)	(36,287)
Cash flows from financing activities:
Principal payments of finance lease liabilities	(277)	(247)
Proceeds from borrowings	175,000	50,000
Repayments of borrowings	(92,500)	(78,500)
Acquisition of treasury stock	(186,605)	(59,673)
Proceeds from issuance of common stock	3,620	3,868
Net cash used for financing activities	(100,762)	(84,552)
Effect of exchange rate changes	(1,860)	7,346
Net decrease in cash, cash equivalents and restricted cash	(19,197)	(873)
Cash, cash equivalents and restricted cash at the beginning of the period	165,969	171,398
Cash, cash equivalents and restricted cash at the end of the period	146,772	170,525
Cash paid during the period for:
Interest	8,934	8,216
Supplemental disclosure of non-cash investing and financing activities:
Additions to property and equipment not yet paid	3,294	6,186
Assets acquired under finance lease	$ 383	$ 633

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 126,722	$ 146,326
Short-term investments	157,102	182,041
Restricted cash	12,964	12,392
Accounts receivable, net	434,362	343,105
Other current assets	144,132	146,093
Total current assets	875,282	829,957
Property and equipment, net	114,587	111,821
Operating lease right-of-use assets	97,495	97,411
Restricted cash	7,086	7,251
Deferred tax assets, net	139,288	129,968
Goodwill	418,693	419,654
Other intangible assets, net	29,720	36,204
Long-term investments	6,396	8,198
Other assets	59,340	61,771
Total assets	1,747,887	1,702,235
Current liabilities:
Accounts payable	6,733	4,753
Current portion of long-term borrowings	381,155	4,886
Deferred revenue	22,591	15,356
Accrued employee costs	112,908	146,775
Accrued expenses and other current liabilities	161,525	135,498
Current portion of operating lease liabilities	18,734	16,857
Total current liabilities	703,646	324,125
Long-term borrowings, less current portion	0	293,712
Operating lease liabilities, less current portion	88,130	88,167
Deferred tax liabilities, net	2,256	2,125
Other non-current liabilities	87,613	81,401
Total liabilities	881,645	789,530
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued	0	0
Common stock, $0.001 par value; 400,000,000 shares authorized, 210,101,885 shares issued and 151,745,072 shares outstanding as of June 30, 2026 and 208,855,566 shares issued and 156,430,028 shares outstanding as of December 31, 2025	210	209
Additional paid-in capital	724,432	677,562
Retained earnings	1,664,571	1,532,979
Accumulated other comprehensive loss	(223,682)	(180,727)
Total including shares held in treasury	2,165,531	2,030,023
Less: 58,356,813 shares as of June 30, 2026 and 52,425,538 shares as of December 31, 2025, held in treasury, at cost	(1,299,289)	(1,117,318)
Total stockholders’ equity	866,242	912,705
Total liabilities and stockholders’ equity	$ 1,747,887	$ 1,702,235