Quality Investor

ExlService Holdings, Inc.

Rank #87Capital Return

EXLS · Nasdaq · Technology

ExlService Holdings, Inc. (EXLS) — Rank #87 by gross profitability (GP/assets 0.48) · ROE 32.2% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001297989 · all metrics point-in-time as of the filing date.

About

ExlService Holdings, Inc., operates as a data and artificial intelligence (“AI”) company in the North America, the United Kingdom, Europe, and internationally.

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The company operates through Insurance; Healthcare and Life Sciences; Banking, Capital Markets, and Diversified Industries; and International Growth Markets. It provides digital operations and solutions and analytics-driven services, such as claims management, premium and benefit administration, agency management, account reconciliation, actuarial and risk analytics, policy research, digital marketing, underwriting support, new business acquisition, policy servicing, audit, surveys, billing and collection, commercial and residential survey, and customer service; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and Life Digital Suite platforms; and Subrosource software platform, an end-to-end subrogation platform. The company also offers health care services for care, utilization, and disease management; payment integrity; revenue optimization, customer engagement, and commercial analytics and regulatory support services; and digital operations and solutions. In addition, it provides financial planning and analysis, accounting, regulatory and statutory reporting, decision support, data management, and compliance services; consumer and commercial banking, credit card and payment services; fintech, wealth and retirement services; capital markets, utilities, retail and consumer packaged goods, communications, media and entertainment, travel and leisure, transportation and logistics, infrastructure, and other business services; property and casualty insurance, life insurance, disability insurance; and insurance brokers, reinsurers, annuity and retirement services.

The company was founded in 1999 and is headquartered in New York, New York.

Industry
Information Technology Services
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

EXLS+43.0% · +7.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$5.61B

P/E (annual)

23.9

P/S (annual)

2.7

P/B

7.2

P/OCF (annual)

16.0

Shareholder Yield

1.1%

Employees

65,000

Industry

Information Technology Services

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.48
Return on equity
32.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.15
Current ratio
2.66×
Net cash
-$146.08M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.8%

Growth

2/2 pass
Revenue growth
13.6%
Piotroski F-Score
8 / 9
Share dilution
-1.1%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

7.7%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.1% — per-share value needs a total required return of 6.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 14.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.4%

r = 10% (base)

7.7%

r = 12%

11.5%

Net debt / market cap: 2.4%

Base FCF: $298.1M3Y mean FCF: $226.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

18.7xExpensive
6.5xmed 7.9x40.2x

P / S

Price / revenue per share

2.2xExpensive
0.5xmed 0.7x4.4x

P / B

Price / book value per share

5.1xExpensive
0.7xmed 1.0x8.6x

P / GP

Price / gross profit per share

5.8xExpensive
1.4xmed 1.8x11.6x

P / FCF

Price / free cash flow per share

15.7xExpensive
3.6xmed 6.9x36.0x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.48

Primary signal (Novy-Marx).

3rd of 9 SIC 7389 peers

Return on equity

32.2%

Gross margin

38.4%

7th of 9 SIC 7389 peers

Revenue growth (YoY)

13.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

13.9%

Revenue CAGR (5Y)

16.8%

Earnings CAGR (3Y)

20.6%

FCF CAGR (3Y)

34.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.15

6th of 7 SIC 7389 peers (best = lowest)

Current ratio

2.66×

5th of 9 SIC 7389 peers

Quick ratio

2.14×

Net cash

-$146.08M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$298.12M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.19

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.8%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Value
Op. Leverage
Hypergrowth
Capital Return