Key Highlights

  • Consensus EPS of 0.56 compares with diluted EPS of 0.42 reported for the second quarter, against 0.40 a year earlier.
  • Consensus revenue of USD 615.51 million compares with revenues of USD 594,763 thousand reported for the second quarter.
  • Selling, general and administrative expenses rose USD 25.1 million, with employee-related costs accounting for USD 19.7 million.
  • Net income was USD 64,511 thousand against USD 66,051 thousand, while operating income was USD 87,295 thousand.

ExlService (NASDAQ:EXLS) reports third-quarter results on Tuesday, Oct. 27, after the market closes. Consensus stands at EPS of 0.56 on revenue of USD 615.51 million, and the company has a market capitalization of USD 6.33 billion.

ExlService provides data analytics and digital operations and solutions. In the second quarter, it reported revenues of USD 594,763 thousand against USD 514,460 thousand and gross profit of USD 225,963 thousand against USD 194,188 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 0.56 is above the diluted EPS of 0.42 reported for the second quarter, which compared with 0.40 a year earlier. The revenue estimate of USD 615.51 million is above the USD 594,763 thousand reported.

Operating income was USD 87,295 thousand against USD 81,138 thousand. Income before income taxes was USD 83,966 thousand against USD 84,738 thousand, and net income was USD 64,511 thousand against USD 66,051 thousand.

Selling, General and Administrative Costs

SG&A expenses rose USD 25.1 million. The filing attributes USD 19.7 million to employee-related costs on higher headcount and wage inflation, USD 1.9 million to iMerit acquisition related expenses, USD 1.8 million to investments in digital and generative AI capabilities and USD 1.7 million to sales and marketing and other operating costs.

SG&A as a percentage of net revenues was 20.9%, against 19.2% in the second quarter of 2025. Total operating expenses were USD 138,668 thousand against USD 113,050 thousand.

Tax Line and Six-Month Context

The filing ties the increase in income tax expense to a rise in non-deductible expenses and lower excess tax benefits related to stock-based compensation compared with the second quarter of 2025.

For the six months ended June 30, 2026, SG&A rose USD 39.9 million, with employee-related costs of USD 31.7 million, investments in digital and generative AI capabilities of USD 3.7 million, sales and marketing costs of USD 2.0 million and iMerit acquisition related expenses of USD 1.9 million. SG&A was 20.6% of net revenues against 19.7%.

The estimates table lists a market capitalization of USD 6.33 billion.

Cost of revenues was USD 368,800 thousand against USD 320,272 thousand, and gross profit for the six months was USD 448,044 thousand against USD 387,502 thousand. Depreciation and amortization expense was USD 14,604 thousand against USD 14,055 thousand.

At June 30, 2026, cash and cash equivalents were USD 126,722 thousand and short-term investments were USD 157,102 thousand, against USD 146,326 thousand and USD 182,041 thousand at the prior year-end. Accounts receivable, net, were USD 434,362 thousand, and restricted cash was USD 12,964 thousand against USD 12,392 thousand. Gross profit for the quarter was USD 225,963 thousand.

Items to Track in the Report

Diluted EPS against 0.56 and revenue against USD 615.51 million are the headline comparisons. Other markers are SG&A as a percentage of net revenues against 20.9%, operating income and any further iMerit acquisition related expenses.