Filing Flows › ExlService Holdings (EXLS) › Q2 2025
ExlService Holdings (EXLS) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 29, 2025
ExlService Holdings (EXLS) reported revenue of $514M for the second quarter 2025 (Q2 2025), +15% from a year earlier and +3% from the quarter before. Operating margin was 15.8%, net earnings $66.1M (12.8% of revenue).
ExlService Holdings, Q2 2025: revenue $514M (+15% year over year), operating margin 15.8%, net earnings $66.1M, operating cash flow $109M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $514M | +3% | +15% |
| Gross profit | $194M | +0.5% | +17% |
| Operating profit | $81.1M | +3% | +32% |
| Net earnings | $66.1M | -0.8% | +44% |
| Operating cash flow | $109M | 34× | +46% |
| Free cash flow | $95.0M | — | +51% |
What changed
Revenue was $514.5M in Q2 2025, up 15% year over year and up 3% from the previous quarter. Insurance was the largest line at 40% of revenue. Banking, Capital Markets and Diversified Industries added $25.2M year over year (up 16%), 38% of the total change.
Gross margin was 37.7%, up 0.7 points from a year earlier. Operating profit was $81.1M, a 15.8% margin (up 2.1 points year over year). Of the extra revenue versus a year earlier, 30% reached operating profit, above the 14% margin then. Operating expenses grew 8% against revenue growth of 15%. The fastest-growing cost line was Sales & marketing (+11%). Net earnings were $66.1M, up 44% year over year. The effective tax rate was 21.9%.
Operating cash flow was $109.4M (up 46% year over year), 166% of net earnings. Non-cash charges added back $14.1M of depreciation and amortization and $16.4M of share-based compensation. Working capital and other items added $12.8M. Capital expenditures of $14.4M left free cash flow of $95.0M.
Questions
What was ExlService Holdings' revenue in the second quarter 2025?
ExlService Holdings (EXLS) reported revenue of $514M for the second quarter 2025 (Q2 2025), +15% from a year earlier and +3% from the quarter before.
Was ExlService Holdings profitable in the second quarter 2025?
Operating profit was $81.1M (15.8% of revenue) and net earnings $66.1M.