ExlService Holdings, Inc.

Hello and welcome to the EXL Service Holdings Inc. 3rd Quarter 2025 Earnings Conference Call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now turn the call over to Shirley Macbeth, Chief Marketing Officer.

Hello, and thank you all for joining EXL's third quarter 2025 financial results conference call. On the call today with me are Rohit Kapoor, Chairman and Chief Executive Officer, and Maurizio Nicolelli, Chief Financial Officer. We hope you've had an opportunity to review the third quarter press release we issued yesterday afternoon. We've also posted a slide deck and investor fact sheet on our investor relations website. As a reminder, some of the matters we'll be discussing this morning are forward looking. Please keep in mind that these forward looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, general economic conditions, those factors set forth in yesterday's press release, discussed in the company's periodic reports, and other documents filed with the SEC from time to time. EXL assumes no obligation to update the information presented on this conference call today. During our call, we may reference certain non-GAAP financial measures, which we believe provide useful information for investors. Reconciliation of these measures to GAAP can be found in our press release, slide deck, and investor fact sheet. With that, I'll turn the call over to Rohit.

Thanks, Shirley. Good morning, everyone. Welcome to EXL's third quarter 2025 earnings call. I'm pleased to report another strong quarter as we consistently executed on our data and AI growth strategy. In the third quarter, we generated revenue of $530 million, an increase of 12% year over year. And we grew adjusted EPS by 11% to 48 cents per share. In the quarter, our data and AI-led revenue grew 18% year over year, reaching 56% of total revenue. Our data and AI-led revenue comes from EXL's AI-powered solutions and services, including those in which we embed data and AI into client workflows. This is the third consecutive quarter we have accelerated our data and AI-led revenue growth, underscoring both the rising demand for AI-driven solutions and demonstrating our leadership in embedding AI directly into client workflows. At the same time, our digital operations revenue grew 6% year over year. This is significant when you consider that as we embed AI into workflows we manage, the revenue moves from digital operations to the data and AI led revenue category. Our third quarter results displayed sustained momentum across all operating segments. The insurance segment grew 9% year over year, which represented a third of our revenue in the quarter. This growth was driven by our insurance clients evolving their operations to be more AI powered. We believe the increased adoption of AI in the workflow in insurance is a long-term trend from which EXL is well positioned to benefit. Healthcare and life sciences represented a quarter of our revenue and was once again our fastest growing segment at 22% growth. This performance was fueled by our demand for data and AI solutions. This included growth in our payment services business, as well as expansion of digital operations and analytic services with new and existing clients. Banking, capital markets, and diversified industries grew 12%, representing nearly a quarter of our revenue. Looking ahead, we see significant opportunity to further increase value and improve business outcomes in this segment by leveraging our enhanced data and AI capabilities across the value chain. In Q3, we drove 8% year-over-year growth in our international growth markets segment as we continue to diversify our business geographically. This segment represented 18% of our total revenue in the quarter. International markets represent meaningful potential for us to accelerate our long-term growth trajectory and expand our global footprint. We are encouraged by the overall demand environment, which remains positive. Our sales pipeline grew with the addition of several new data and AI-led opportunities. As enterprises navigate ongoing economic uncertainty, their priorities are expanding beyond the traditional focus on cost efficiency. They are also looking to change their business models, expand their total addressable market, and grow revenue. As clients adopt AI to help achieve these goals, they need trusted partners to help them navigate change and deliver tangible business outcomes. With our proven track record and comprehensive set of innovative AI-led solutions, we are a natural partner for clients on this journey. For our existing contracts, we maintain exceptionally high renewal rates. More than 75% of our revenue is recurring or annuity-like. This provides revenue stability and predictability. Combined with a healthy new business pipeline, we have momentum to sustain double-digit top-line growth into 2026. I'd like to highlight progress made in advancing our data and AI strategy to deliver differentiated value for our clients. I'll cover three areas. Number one, the launch of our new EXL data.ai solution. Two, client momentum with the adoption of embedding AI in the workflow. And three, industry recognition of our domain, data, and AI leadership. Firstly, I'll cover the launch of our latest innovation. Earlier this month, we unveiled Excel Data.ai, the first of its kind, a genetic AI suite of data solutions that help clients make their enterprise data AI ready. Data is the single biggest barrier to AI adoption. Our research shows only 30% of organizations can access their data enterprise-wide and most struggle with unifying data silos across legacy platforms. The challenge is especially acute with unstructured data, which now represents 85% of all enterprise data, especially in regulated industries. To make unstructured data AI-ready, it needs to be annotated, labeled, and categorized within a structure. This is a manual, time-consuming, and expensive process. We built exldata.ai to solve these challenges. With Excel Data.ai, more than 65 AI agents autonomously manage data modernization, governance, quality, lineage, and data accessibility across the entire data lifecycle. This AI-first approach sharply reduces implementation time, which previously used to take months down to weeks and even days. Built on a platform agnostic architecture, EXCEL Data.AI integrates seamlessly with all leading data platforms, including our launch partner, Databricks, and Snowflake and Palantir, and can be deployed across all the major cloud providers, including Microsoft Azure, Google Cloud Platform, Amazon Web Services, as well as with NVIDIA's accelerated computing infrastructure. We believe exldata.ai is a game changer, helping clients overcome the biggest hurdle to AI adoption. Next, I'd like to highlight our success with embedding AI in client workflows. I'll share three examples that are illustrative of the scale of many projects underway and the client business value that we generate. The first use case is a multi-agent powered solution for a UK insurer designed to improve and accelerate risk assessment for underwriters. EXL embedded AI into a new business submission workflow that processes thousands of emails and attachments each month. The AI agents extract the right information and assess risk in real time. Processing time has been reduced from a week to a few hours and code conversion has increased by 7%. Real-time insights for brokers also help improve the customer experience during client interactions. The second client example is a large US healthcare organization. The collaboration began with the successful delivery of an enterprise-wide GenAI platform for document processing, which has become a foundational solution for managing unstructured data across the organization. Building on that momentum, we are designing a next generation agentic ecosystem to power safe and secure solutions across their finance, pricing and supply chain functions. These AI powered solutions are helping to reduce the cost of care, accelerate speed to market for new solutions and improve end user experiences. Work that used to take weeks can now be done in hours. My third example demonstrates how EXL is using AI to transform digital operations for existing clients. EXL's in-depth knowledge of the client processes that we already run is a huge advantage in accelerating infusion of AI and driving faster outcomes. For the past two decades, EXCEL has been a strategic partner to one of UK's largest energy and home services companies. We've helped them reimagine their end-to-end operating processes, including onboarding, meter to cash, consume to pay, and customer exit. By integrating data and AI throughout the front, middle and back office operations, over 35% of transactions that we run for this client are now AI enabled. Our solutions have driven significant improvements in customer experience, including achieving 98% onboarding accuracy and a 10% upliftment in billing accuracy and timeliness. In addition, our initiatives leveraging intelligent automation and applied AI have improved productivity by over 30%. Our revenue from this client has not declined as we were awarded additional work that grew the relationship. And we are positioned really well to begin implementing agentic AI for this client and grow value added revenue streams. These three client examples are representative of numerous successful EXL client AI deployments. While many enterprises struggle to generate returns from AI investments, Excel's unique strengths in domain, data, and AI are delivering meaningful ROI and transforming how businesses operate. This has resulted in a success rate of over 90% for Excel's AI deployments. Finally, I'm proud to share that in Q3, EXL received several recognitions of our AI services and solutions leadership across our core industry verticals. Here are a few highlights. In insurance, we were named a market leader in the HFS Research Horizon Insurance Services 2025 report, which emphasized EXL's data-first approach, deep insurance expertise, and AI-driven operational insights. For healthcare, EXL was recognized as a leader in Everest Group's Healthcare Data Analytics and AI Services Peak Matrix 2025 for our domain expertise, analytics focus, and strong partner ecosystem. In banking, EXL was recognized as a category winner in the 2025 IDC FinTech Real Results Program. We were recognized for building a financing solution that allowed First National Bank of Omaha to introduce new financing options quickly, integrate seamlessly with merchants, and scale with agility. These recognitions validate EXL's innovative data and AI expertise, as well as our unique approach to helping clients deliver significant business outcomes at scale. In conclusion, we saw strong demand for our services and solutions across the markets we serve. We have bolstered EXL's competitive position by investing in next generation data and AI capabilities with the launch of EXL data.ai. Our business portfolio is well balanced and stable, and we have excellent visibility and confidence for the remainder of the year. As a result, we are raising our revenue and EPS guidance for the full year. With that, I'll turn the call over to Maurizio to provide more details on our financial performance.