ExlService Holdings, Inc.EXLS
ExlService Holdings, Inc. Segments Disclosure
Segment Information
The Company is a provider of data and AI-led solutions and services and digital operations solutions and services in an integrated manner for clients across industry verticals.
In the first quarter of 2025, the Company implemented operational and structural changes to accelerate the execution of Company’s data and AI strategy and align with how the Company’s Chief Operating Decision Maker (“CODM”) reviews financial information and makes operating decisions. This new operating model comprises of Industry Market Units (“IMUs”) to focus on delivering higher value to clients leveraging full suite of capabilities; and Strategic Growth Units to focus on rapidly advancing the capabilities specific to various industries and client needs.
Consequently, the Company realigned its reportable segments to the IMUs as follows:
• Insurance
• Healthcare and Life Sciences,
• Banking, Capital Markets and Diversified Industries,
• International Growth Markets
The primary changes in the new reportable segments reflect 1) the integration of the former Analytics reportable segment as a core capability within each of the IMUs, ensuring alignment with the specialized needs of clients across IMUs, 2) the reorganization of the former Emerging Business reportable segment into a Banking, Capital Markets and Diversified Industries reportable segment, excluding Life Sciences, which is now a part of the new Healthcare and Life Sciences reportable segment, and 3) the formation of International Growth Markets as a separate IMU to represent all services and solutions offerings to clients in the United Kingdom, Europe, Middle East, Asia-Pacific and South Africa geographies across all industry verticals. The International Growth Markets IMU is helping the Company strategically expand its footprint in markets outside of North America and drive focus on offerings and expansion in those markets in new and existing clients
In addition, revenues by service type are now presented as data and AI-led solutions and services and digital operations solutions and services. Revenues attributable to geographical regions are now presented as North America (including the United States, Canada and Mexico), the United Kingdom & Europe, and the Rest of World.
The Company has recast segment disclosures for the prior periods presented herein to conform to the new segment structure. This change in segment presentation does not affect the Company’s consolidated statements of income, balance sheets or statements of cash flows.
The Company’s Chief Executive Officer has been identified as the CODM. The CODM generally reviews financial information such as revenues, cost of revenues and gross profit to allocate an overall budget and measure segment performance.
Revenues, net and cost of revenues for the years ended December 31, 2025, 2024 and 2023, respectively, for each of the reportable segments, are as follows:
| Year ended December 31, 2025 | |||||||||||||||||||||||||||||
| Insurance | Healthcare and Life Sciences | Banking, Capital Markets and Diversified Industries | International Growth Markets | Total | |||||||||||||||||||||||||
| Revenues, net | $ | 710,575 | $ | 532,584 | $ | 482,356 | $ | 362,164 | $ | 2,087,679 | |||||||||||||||||||
Cost of revenues (1) | |||||||||||||||||||||||||||||
| Employee costs | 380,703 | 249,119 | 260,234 | 193,270 | 1,083,326 | ||||||||||||||||||||||||
| Infrastructure and technology costs | 54,310 | 28,943 | 25,952 | 34,002 | 143,207 | ||||||||||||||||||||||||
Other costs (2) | 18,803 | 22,193 | 12,578 | 6,496 | 60,070 | ||||||||||||||||||||||||
Gross profit (1) | $ | 256,759 | $ | 232,329 | $ | 183,592 | $ | 128,396 | $ | 801,076 | |||||||||||||||||||
| Operating expenses | 487,326 | ||||||||||||||||||||||||||||
| Income from operations | 313,750 | ||||||||||||||||||||||||||||
| Foreign exchange gain, net, interest expense and other income, net | 1,302 | ||||||||||||||||||||||||||||
| Income before income tax expense and earnings from equity affiliates | $ | 315,052 | |||||||||||||||||||||||||||
(1) Exclusive of depreciation and amortization expense.
(2) Other costs primarily include travel and entertainment costs and other direct pass-through expenses related to client contracts for the Company’s direct marketing business.
| Year ended December 31, 2024 | |||||||||||||||||||||||||||||
| Insurance | Healthcare and Life Sciences | Banking, Capital Markets and Diversified Industries | International Growth Markets | Total | |||||||||||||||||||||||||
| Revenues, net | $ | 656,419 | $ | 430,679 | $ | 426,716 | $ | 324,558 | $ | 1,838,372 | |||||||||||||||||||
Cost of revenues (1) | |||||||||||||||||||||||||||||
Employee costs (2) | 337,483 | 198,957 | 236,361 | 174,740 | 947,541 | ||||||||||||||||||||||||
| Infrastructure and technology costs | 49,349 | 25,230 | 21,809 | 30,471 | 126,859 | ||||||||||||||||||||||||
Other costs (3) | 38,100 | 18,919 | 10,445 | 5,495 | 72,959 | ||||||||||||||||||||||||
Gross profit (1) | $ | 231,487 | $ | 187,573 | $ | 158,101 | $ | 113,852 | $ | 691,013 | |||||||||||||||||||
| Operating expenses | 427,393 | ||||||||||||||||||||||||||||
| Income from operations | 263,620 | ||||||||||||||||||||||||||||
| Foreign exchange gain, net, interest expense and other income, net | (2,273) | ||||||||||||||||||||||||||||
| Income before income tax expense and earnings from equity affiliates | $ | 261,347 | |||||||||||||||||||||||||||
(1) Exclusive of depreciation and amortization expense.
(2) Employee costs include restructuring costs of $782, $267, $1,050 and $979 for Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries and International Growth Markets, respectively. Refer to Note 26 – Restructuring Costs to the consolidated financial statements for further details.
(3) Other costs primarily include travel and entertainment costs and other direct pass-through expenses related to client contracts for the Company’s direct marketing business.
| Year ended December 31, 2023 | |||||||||||||||||||||||||||||
| Insurance | Healthcare and Life Sciences | Banking, Capital Markets and Diversified Industries | International Growth Markets | Total | |||||||||||||||||||||||||
| Revenues, net | $ | 586,403 | $ | 366,392 | $ | 411,828 | $ | 266,045 | $ | 1,630,668 | |||||||||||||||||||
Cost of revenues (1) | |||||||||||||||||||||||||||||
| Employee costs | 300,249 | 170,675 | 226,576 | 143,462 | 840,962 | ||||||||||||||||||||||||
| Infrastructure and technology costs | 43,289 | 18,924 | 18,860 | 24,400 | 105,473 | ||||||||||||||||||||||||
Other costs (2) | 41,776 | 19,503 | 10,408 | 4,780 | 76,467 | ||||||||||||||||||||||||
Gross profit (1) | $ | 201,089 | $ | 157,290 | $ | 155,984 | $ | 93,403 | $ | 607,766 | |||||||||||||||||||
| Operating expenses | 369,011 | ||||||||||||||||||||||||||||
| Income from operations | 238,755 | ||||||||||||||||||||||||||||
| Foreign exchange gain, net, interest expense and other income, net | (814) | ||||||||||||||||||||||||||||
| Income before income tax expense and earnings from equity affiliates | $ | 237,941 | |||||||||||||||||||||||||||
(1) Exclusive of depreciation and amortization expense.
(2) Other costs primarily include travel and entertainment costs and other direct pass-through expenses related to client contracts for the Company’s direct marketing business.
Revenues, net by service type, were as follows:
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Data and AI-led (1) | $ | 1,155,342 | $ | 979,731 | $ | 834,737 | |||||||||||
Digital operations (2) | 932,337 | 858,641 | 795,931 | ||||||||||||||
| Revenues, net | $ | 2,087,679 | $ | 1,838,372 | $ | 1,630,668 | |||||||||||
(1) Data and AI-led revenue comes from AI-powered solutions and services in which the Company embeds data and AI into client workflows, leveraging the Company’s depth of domain knowledge, analytics, data management and digital engineering expertise. Company’s digital and AI capabilities that drive data and technology-led transformation for the clients include generative AI, reinforcement learning, hyper automation, cloud data management, conversational AI, robotics, enterprise architecture development, integration platform as a service and AI for operations.
(2) Digital operations revenue comes from the technology-enabled managed services that blend Company’s deep domain expertise with industry-specific solutions and services that help clients run business functions with enhanced productivity, greater speed and improved accuracy. The Company applies deep industry expertise and tailored technology—whether its proprietary technology or client technology—to solve complex challenges and drive measurable outcomes. These digital operations deployments form the foundation for future client transformation opportunities to infuse AI into client workflows and unlock even greater value.
All four reportable segments of the Company include revenues from both data and AI-led solutions and services and digital operations solutions and services.
The Company attributes revenues based on geographical markets where the customer operations being served by it are located.
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues, net | |||||||||||||||||
| North America | $ | 1,725,612 | $ | 1,513,812 | $ | 1,364,449 | |||||||||||
| United Kingdom & Europe | 307,305 | 272,530 | 226,757 | ||||||||||||||
| Rest of World | 54,762 | 52,030 | 39,462 | ||||||||||||||
| Revenues, net | $ | 2,087,679 | $ | 1,838,372 | $ | 1,630,668 | |||||||||||
Revenues, net by industry verticals, were as follows:
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Insurance | $ | 829,899 | $ | 767,311 | $ | 672,869 | |||||||||||
| Healthcare and Life Sciences | 533,542 | 431,790 | 367,340 | ||||||||||||||
| Banking, Capital Markets and Diversified Industries | 724,238 | 639,271 | 590,459 | ||||||||||||||
| Revenues, net | $ | 2,087,679 | $ | 1,838,372 | $ | 1,630,668 | |||||||||||
Long-lived assets by geographic area, which consist of property and equipment, net and operating lease ROU assets were as follows:
| As of | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| Long-lived assets | |||||||||||
| India | $ | 63,999 | $ | 63,040 | |||||||
| North America | 60,575 | 52,510 | |||||||||
| The Philippines | 36,480 | 25,881 | |||||||||
| South Africa | 19,635 | 23,828 | |||||||||
| Rest of World | 28,543 | 5,362 | |||||||||
| Long-lived assets | $ | 209,232 | $ | 170,621 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.