Manager

EXL completes acquisition of iMerit, accelerating enterprise AI leadership. iMerit founder and CEO Radha Ramaswami Basu joins EXL executive committee. August 03, 2026 08:03 ET | Source: EXL NEW YORK, Aug. 03, 2026 (GLOBE NEWSWIRE) - ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, announced it has completed the acquisition of iMerit, a recognized leader in AI model training, evaluation and reinforcement learning. Together, EXL's enterprise data and AI leadership and iMerit's capabilities and foundation model relationships will help clients build AI systems that are trusted, accountable and built to perform in the enterprise. The completion of the acquisition establishes an end-to-end AI platform for enterprises, uniting EXL's deep data, context and AI expertise with iMerit's technology, expert-led solutions and generative AI experience helping them accelerate the transition from pilot to production-scale AI. As part of the transaction, iMerit founder and CEO Radha Ramaswami Basu joins EXL as Executive Vice President, Head of iMerit, and becomes a member of the company's executive committee. "This acquisition is a transformational pivot for EXL, deepening our vertically specialized AI capabilities and expanding our reach into high-growth AI technology sectors," said Rohit Kapoor, chairman and chief executive officer of EXL. "By combining iMerit's capabilities with EXL's domain expertise and AI platforms, we are well positioned to help clients build, fine-tune and operationalize AI that performs reliably in production. This is especially critical in regulated industries where domain knowledge, context and compliance are non-negotiable. I am delighted to welcome Radha to EXL's executive committee; her vision, leadership, and deep expertise at the intersection of human intelligence and AI will help shape the next chapter of EXL's growth and innovation." "The next generation of enterprise AI will be defined not by the models organizations choose, but by how effectively they can deploy them in real-world business environments," said Basu. "What excites me most about joining EXL is the opportunity to combine iMerit's pioneering work in AI data, evaluation and human intelligence with EXL's extraordinary depth in data, AI and enterprise transformation. Together, we can help clients bridge the gap between innovation and execution, turning AI potential into measurable business results. I am energized by what lies ahead and honored to join EXL's executive committee as we help clients unlock the full value in enterprise AI integration." With iMerit now part of EXL, the combination extends the data and AI-led strategy EXL has been executing on for several years. EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world's leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 68,000 employees spanning six continents. For more information, visit www.exlservice.com. About iMerit iMerit is a leader in AI fine tuning, evaluation, and reinforcement learning. iMerit helps frontier AI labs and enterprises build more accurate, reliable, and domain-aware models. iMerit delivers high-quality data across industries such as high-tech, autonomous mobility, healthcare AI, and robotics. Scholars, its global network of specialists, includes physicians, scientists, engineers, linguists, and other subject matter experts who power high-quality data creation, reasoning evaluation, model alignment, and human feedback workflows for next-generation AI systems. Its proprietary Ango Hub platform allows customers and experts to collaborate on complex multimodal data to generate highly curated and validated training artifacts for high-stakes models. Learn more at imerit.ai. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL's control. Forward-looking statements include information concerning EXL's possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL's actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL's filings with the Securities and Exchange Commission, including EXL's Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. Contacts: Investor Relations Andrew Thut Head of Investor Relations and Capital Markets [email protected] Company Profile EXL Industry: Computer Services Website: https://exlservice.com Recommended reading.

ExlService Holdings extended its winning streak to a fifth consecutive day, jumping 17.88% to close at $35.99 after reporting strong second-quarter results. The company recorded $594.76 million in revenue, marking a 15.6% increase from the same period last year, driven by strong performance across all business segments. The insurance segment contributed the largest portion at $197.8 million. ExlService won 17 new clients during the period, signalling strong demand for its services. The company issued full-year 2026 revenue guidance of $2.39 billion to $2.415 billion, representing a 14% to 16% year-on-year increase. Needham & Company raised its price target to $45 from $40, maintaining a buy recommendation. Institutional investor interest grew, with 38 hedge funds holding positions in the first quarter, up from 35 previously.

ExlService Q2 earnings call highlights. July 29, 2026 Key points. * Strong Q2 performance: ExlService reported revenue of $594.8 million, up 15.6% year over year, while adjusted diluted EPS increased 22.3% to $0.59. Data and AI-led revenue rose 30% and represented 61% of total revenue. * AI expansion and iMerit acquisition: The company said clients are moving AI projects into production and highlighted opportunities in agentic AI and token optimization. Its acquisition of iMerit is expected to close July 31 and contribute $28 million to $32 million in 2026 revenue. * 2026 outlook raised: ExlService increased its full-year revenue guidance to $2.39 billion-$2.415 billion and adjusted EPS guidance to $2.25-$2.29. Management plans increased investment in sales, data management and AI capabilities, which is expected to pressure second-half operating margins. * Interested in ExlService? Here are five stocks we like better. ExlService NASDAQ: EXLS reported second-quarter 2026 revenue of $594.8 million, up 15.6% year over year on a reported basis and 15.9% on a constant-currency basis, as growth accelerated across each of its operating segments. Adjusted diluted earnings per share rose 22.3% from a year earlier to $0.59. Chairman and Chief Executive Officer Rohit Kapoor said the company entered 2026 with positive momentum that strengthened through the first half, supported by enterprise demand for data, AI engineering and AI-enabled operations. He said clients are increasingly moving from AI proof-of-concept projects toward production deployments, while also investing in the data, governance, security and infrastructure needed to support AI across their organizations. "The effort that is required to enable AI for any enterprise is massive," Kapoor said during the earnings call. "Clients are really struggling with this change, and we are in a great position to actually help them with this." Data and ai-led revenue accelerates. Data and AI-led services and solutions accounted for 61% of ExlService's revenue in the quarter and increased 30% year over year. Kapoor noted that growth in the category has accelerated for four consecutive quarters, from 18% in the third quarter of 2025 to 30% in the latest period. The company said its reported digital operations revenue declined about 1.5% year over year, but management characterized that decline as a planned consequence of changing revenue mix. As AI becomes embedded into operations engagements, ExlService classifies that work as data and AI-led revenue because it is more intellectual-property-led and higher value, Kapoor said. ExlService said total operations revenue, which includes both digital operations and AI-led operations, rose 10% year over year. Kapoor said the company is introducing agentic AI into client processes such as insurance claims and underwriting, combining deterministic models designed to follow policies and regulations with probabilistic models used for judgment and decision-making. The work requires substantial customization by client, business line and geography, he said, even where the company can reuse common tools and components. Kapoor said ExlService's existing operational relationships, workflow knowledge and familiarity with clients' data give it an advantage in deploying those solutions. The company also highlighted token optimization as an emerging opportunity. Kapoor said ExlService has reduced token consumption for certain clients by as much as 80% through workflow-specific design and engineering, helping lower the costs associated with deploying AI models at scale. Segment performance broadly positive. * Insurance: Revenue was $197.8 million, up 14.9% year over year, driven by expansion and higher volumes in existing client relationships. * Healthcare and life sciences: Revenue was $158 million, up 22% year over year, supported by Payment Integrity services, client expansions and new wins. * Banking, capital markets and diversified industries: Revenue was $133.9 million, up 10.7% year over year, reflecting new client wins and expanded existing relationships. * International growth markets: Revenue was $105.1 million, up 16.3% year over year and 8.9% sequentially, aided by client ramp-ups, higher volumes and new wins. Kapoor said international markets represent a major long-term opportunity. During the quarter, ExlService appointed Bhupender Singh as president and head of international growth markets. Kapoor said the company has historically had a limited international presence and is investing in talent, solutions and go-to-market capabilities across EMEA and APAC. Discover more Business News Cryptocurrency News He also said cross-selling services to international operations of U.S.-based clients is an area where ExlService needs to improve. Singh is expected to focus on that opportunity, according to Kapoor. iMerit acquisition expected to close July 31. ExlService announced the acquisition of iMerit, a provider of AI model training, evaluation and reinforcement learning services, which it expects to close on July 31. Kapoor described the transaction as a "transformational pivot" that will add relationships with foundation-model companies, expand the company's AI capabilities and extend its addressable market into AI technology sectors. Management said iMerit's revenue is expected to be concentrated primarily in diversified industries, including work with frontier and foundational model companies, with healthcare and life sciences also representing a meaningful area. The acquisition is not expected to materially affect international growth markets. ExlService expects iMerit to contribute approximately $28 million to $32 million of revenue over the final five months of 2026. The acquisition is expected to have a marginally dilutive impact of $0.01 on adjusted EPS for the year. Guidance raised, with additional investment planned. The company raised its full-year 2026 revenue outlook to $2.39 billion to $2.415 billion, representing reported growth of 14% to 16%. The forecast implies organic constant-currency growth of 13% to 14% and includes the anticipated iMerit contribution. At the midpoint, the updated revenue range is $88 million above ExlService's prior guidance. ExlService also increased its adjusted diluted EPS outlook to $2.25 to $2.29, from prior guidance of $2.18 to $2.23. The new range represents projected year-over-year growth of approximately 16% to 18%. Chief Financial Officer Maurizio Nicolelli said the company plans to increase investment during the second half in front-end sales, data management, AI capabilities and solutions. As a result, adjusted operating margin is expected to be lower in the second half than in the first half, though full-year margin is expected to be comparable with 2025. For the first half, ExlService generated $1.17 billion in revenue, up 14.7% year over year, while adjusted operating margin increased 20 basis points to 20.1%. The company reported $284 million in cash and short- and long-term investments at June 30, against $381 million in revolver debt. During the first half, ExlService repurchased 5.8 million shares for $179 million at an average price of $30.90 per share. Nicolelli said the company expects to continue repurchases during the second half, though likely at a slower pace than in the first half. About ExlService (NASDAQ:EXLS). ExlService Holdings, Inc NASDAQ: EXLS is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk. Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider ExlService, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ExlService wasn't on the list. While ExlService currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.