Exlservice Holdings (EXLS) AI Stock Analysis

• Market Cap: $6.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.85
• Revenue Growth: 15.15%
• EPS Growth: 34.33%
• Country: US
• Employees: 59,500
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 0.49
• Shares Outstanding: 161,513,150
• 10 Day Avg. Volume: 1,832,152
• 30 Day Avg. Volume: 1,890,762
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 9.57
• Enterprise Value/Ebitda: 18.84
• 1Y Price Target: $53.14
• Price Target Upside: 25.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $47.00 ▲(11.01% Upside)

Exlservice Holdings demonstrates strong financial performance and a positive outlook from recent earnings and corporate events. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock is relatively expensive. The company's strategic focus on AI and data initiatives, along with a share repurchase program, supports a positive long-term outlook.

Positive Factors

Earnings

Earnings exceed forecasts due to a higher-than-expected foreign exchange gain, higher-than-expected other income, and a lower-than-expected tax rate.

Revenue Growth

Total revenue increased 15% YOY and 3% sequentially on a reported basis.

Share Repurchase

ExlService announced an accelerated share repurchase agreement to buy back $125 million from common stockholders, signaling management’s confidence in the company’s ability to sustain double-digit growth.

Negative Factors

Margin Pressure

Margins are expected to be down year-over-year in the second half as the company reinvests.

Operating Margin

Adjusted operating margin was down 20 basis points year-over-year and 50 basis points sequentially, indicating some margin pressure.

Sector Challenges

Backdrop of IT/analytics/BPO firms is tricky, as the group has fallen a bit out of favor.

Exlservice Holdings Business Overview & Revenue Model

Company Description

ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. It operates through Insurance, Healthcare, Analytics, and Emerging Business segments. The company provides digital operations and solutions and analytics-driven services across the insurance industry in areas, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform. It also offers CareRadius, an integrated care management offering; and health care services related to care management, utilization management, disease management, payment integrity, revenue optimization and customer engagement to healthcare payers, providers, pharmacy benefit managers, and life sciences organizations. Further, it offers predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management, risk underwriting and pricing, operational effectiveness, credit and operational risk monitoring and governance, payment integrity and care management, and data management. The company was founded in 1999 and is headquartered in New York, New York.

How the Company Makes Money

Exlservice generates revenue primarily through its business process management (BPM) services and analytics solutions. The company charges clients on a fee-for-service basis, which can include fixed-price contracts, time-and-materials contracts, and performance-based pricing models. Key revenue streams come from long-term contracts with large enterprises in various sectors, including insurance, healthcare, and financial services. Exl also benefits from strategic partnerships and alliances with technology providers, which enhance its service offerings and expand its market reach. Additionally, the company's focus on digital transformation and automation has positioned it well to capture growth in the evolving business landscape, contributing to its overall earnings.

Exlservice Holdings Financial Statement Overview

Summary

Exlservice Holdings showcases a solid financial foundation with consistent revenue growth, excellent profit margins, low financial leverage, and effective cash management, positioning it well in its industry.

Income Statement

The income statement reflects strong financial performance with consistent revenue growth and solid profitability margins. The TTM (Trailing-Twelve-Months) data shows a Gross Profit Margin of 37.2% and a Net Profit Margin of 11.4%, both indicating efficient cost management and profitability. Revenue growth from 2024 to TTM is 3.51%, showing steady expansion. EBIT and EBITDA margins are robust at 14.7% and 18.4%, respectively, demonstrating operational efficiency.

Balance Sheet

The balance sheet is healthy with a relatively low Debt-to-Equity Ratio of 0.08 in TTM, suggesting low financial leverage and reduced risk. The Equity Ratio is strong at 60.4%, indicating a solid equity base. Return on Equity (ROE) is 21.4%, reflecting effective use of equity to generate profits. Overall, the balance sheet indicates financial stability and prudent management of liabilities.

Cash Flow

Cash flow analysis reveals positive trends with Free Cash Flow growth rate of 10.55% from 2024 to TTM, showcasing effective cash management. The Operating Cash Flow to Net Income Ratio stands at 1.36, indicating good cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.14, reinforcing the company's ability to generate cash after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	1.84B	1.63B	1.41B	1.12B	958.43M
Gross Profit	749.17M	691.01M	607.77M	515.45M	431.36M	334.50M
EBITDA	380.30M	297.20M	305.72M	262.32M	208.15M	180.03M
Net Income	236.32M	198.30M	184.56M	142.97M	114.76M	89.48M
Balance Sheet
Total Assets	1.71B	1.62B	1.44B	1.35B	1.28B	1.25B
Cash, Cash Equivalents and Short-Term Investments	353.29M	340.58M	290.83M	297.70M	313.88M	402.82M
Total Debt	85.66M	364.83M	271.76M	313.13M	347.01M	330.73M
Total Liabilities	647.55M	688.54M	552.53M	587.94M	589.75M	528.68M
Stockholders Equity	1.06B	929.86M	889.44M	758.18M	693.16M	719.17M
Cash Flow
Free Cash Flow	277.81M	222.26M	158.40M	121.31M	147.14M	160.75M
Operating Cash Flow	328.11M	268.52M	211.20M	166.14M	184.39M	202.97M
Investing Cash Flow	-112.14M	-119.10M	-12.00M	-96.55M	-114.27M	-18.32M
Financing Cash Flow	-176.35M	-119.10M	-181.45M	-81.72M	-146.88M	-89.56M

Exlservice Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXLS, the sentiment is Negative. The current price of 42.34 is below the 20-day moving average (MA) of 42.59, below the 50-day MA of 44.06, and below the 200-day MA of 45.82, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXLS.

Exlservice Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	79 Outperform	$3.21B	19.99	21.23%	―	1.94%	26.15%
G	78 Outperform	$7.62B	14.50	21.86%	1.48%	7.37%	-14.64%
EPAM	76 Outperform	$8.52B	22.93	11.36%	―	9.73%	-0.29%
EXLS	72 Outperform	$6.92B	29.65	24.70%	―	15.15%	34.33%
DXC	68 Neutral	$2.47B	6.68	12.60%	―	-4.93%	497.03%
Sector *	57 Neutral	€1.69B	12.10	1.59%	3.67%	2.96%	-106.86%
KD	47 Neutral	$6.96B	24.51	26.55%	―	-3.44%	―

Exlservice Holdings Corporate Events

ExlService Holdings Announces $125M Share Repurchase Agreement

On July 29, 2025, ExlService Holdings announced a $125 million accelerated share repurchase agreement with Citibank as part of its $500 million stock repurchase program, funded through cash and credit facilities. This move is expected to influence the company’s stock value based on daily volume-weighted average prices. Additionally, ExlService reported a strong financial performance for Q2 2025 with a 14.7% revenue increase year-over-year, driven by its competitive positioning in the data and AI industry. The company raised its revenue and EPS guidance for 2025, reflecting confidence in its growth strategy and ongoing investments in AI.

The most recent analyst rating on (EXLS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Exlservice Holdings stock, see the EXLS Stock Forecast page.

Exlservice Holdings Approves 2025 Omnibus Incentive Plan

On June 17, 2025, ExlService Holdings, Inc. held its Annual Meeting of Stockholders where the 2025 Omnibus Incentive Plan was approved, reserving 6,800,000 shares for various awards and setting annual limits on grants. Additionally, the stockholders voted on four proposals, including the election of seven board members, ratification of Deloitte & Touche LLP as the accounting firm, approval of executive compensation, and the Omnibus Incentive Plan, all of which were approved.

The most recent analyst rating on (EXLS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Exlservice Holdings stock, see the EXLS Stock Forecast page.