Growth vs. Reality: Unpacking Contradictions in Q2 2025 Earnings Call Insights

Revenue Growth and AI Integration:
- ExlService Holdings, Inc. reported revenue of $514 million for Q2 2025, up 15% year-over-year.
- This growth was driven by strong performance across all operating segments, particularly in data and AI-led revenue which increased by 17% year-over-year and now accounts for 54% of total revenue.

Segment Performance:
- The insurance segment represented 1/3 of revenue, with stable growth driven by AI-powered operations, while the health care and life sciences segment, accounting for 1/4 of revenue, grew 22% year-over-year.
- The banking, capital markets, and diversified industries segment accelerated year-over-year growth for the fourth consecutive quarter, contributing near 1/4 of revenue.

International Growth Markets:
- The international growth markets segment grew to 18% of total revenue, up 15% year-over-year, indicating strong geographic expansion.
- This growth was driven by new client wins and higher volumes with existing clients across insurance and banking segments.

Financial Health and Margins:
- ExlService maintained an adjusted operating margin of 19.6%, with SG&A expenses as a percentage of revenue declining by 130 basis points.
- The focus on data and AI solutions allowed for improved revenue growth despite investments in new solutions, enhancing overall profitability.