Key Highlights

  • ExlService Holdings reported third quarter revenue of USD 634.0 million, up from USD 529.6 million a year earlier.
  • GAAP diluted earnings per share were USD 0.45, up from USD 0.36 in the same period of 2025.
  • Net income reached USD 68.8 million for the quarter, supported by growth across the company's reportable segments.
  • The company's top two geographic regions accounted for 82.2% and 15.0% of total revenue during the quarter.

Revenue Growth Accelerates on Segment Strength

ExlService Holdings (NASDAQ:EXLS) reported third quarter revenue, net, of USD 634.0 million, up from USD 529.6 million in the same period of 2025, an increase of nearly 20%. Net income was USD 68.8 million, with GAAP diluted earnings per share of USD 0.45, up from USD 0.36 a year earlier.

The company's results reflect contributions across its Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets reportable segments, which the company's chief executive officer, as chief operating decision maker, uses to evaluate performance and allocate resources.

Client Concentration and Acquisition Integration

The company's top ten clients accounted for 33.3% of total revenue during the quarter, down slightly from 34.5% in the same period of 2025, reflecting continued efforts to diversify its client base even as it maintains long-standing relationships with its largest accounts. The acquisition of iMerit Inc. is included within the Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets reportable segments.

Cost of revenues increased to USD 392.8 million from USD 325.6 million a year earlier, broadly in line with the pace of revenue growth, resulting in gross profit of USD 241.1 million for the quarter, up from USD 203.9 million in the prior year period.

Geographic Concentration and Risk Considerations

The company's two largest geographic regions generated 82.2% and 15.0% of total revenue in the third quarter, compared with 82.5% and 14.9% in the same period of 2025, indicating a broadly stable geographic mix. This concentration means operational or economic disruptions in either region could have an outsized effect on consolidated results relative to a more geographically diversified peer.

Continued integration of the iMerit acquisition across multiple reportable segments could support further revenue diversification, while reliance on a concentrated set of top clients, even at a declining share of total revenue, remains a factor that could affect results if any major client relationship were to end.

Segment and Client Metrics to Watch

The pace of revenue growth across the company's five reportable segments, continued integration progress on the iMerit acquisition, and any further change in the geographic revenue concentration between the company's top two regions are among the items that may shape how the fourth quarter compares with this result. Top client concentration, at 33.3% of revenue this quarter, remains a reference point for assessing client diversification progress.

Operating expense trends, including the pace of general and administrative and selling and marketing expense growth relative to revenue, are additional data points the company has referenced in describing its margin trajectory. Continued expansion of the International Growth Markets segment, alongside the core Insurance and Healthcare and Life Sciences businesses, remains part of the diversification strategy management has pointed to for coming quarters.