EXLS · 10-Q · 2026Q1 · Full report

Liquidity and Cash Position

ExlService Holdings, Inc. · 2026-04-28 · Importance 71 · Surprise 48

As of March 31, 2026 the company had $253.8 million in cash, cash equivalents and short-term investments (down from $328.4 million at December 31, 2025), of which $206.9 million is held in foreign jurisdictions that may be subject to withholding and other taxes upon distribution. Net cash provided by operating activities was $1.7 million for Q1 2026 (down from $3.2 million in Q1 2025), while investing activities provided $44.0 million (vs. use of $22.3 million) mainly from higher redemptions of investments; financing activities used $44.6 million due largely to $148.0 million of treasury stock repurchases, partially offset by $100.0 million of net borrowings. Management believes existing liquidity and available sources will be sufficient to meet cash requirements for the next 12 months but notes that accelerated repurchases or acquisition activity could require additional financing.

Key facts

• Net cash provided by/(used for) investing activities for the three months ended March 31, 2026: $44.0 million, compared to net cash used of $22.3 million for the three months ended March 31, 2025, an increase of $66.3 million.
• As of March 31, 2026, cash, cash equivalents and short-term investments totaled $253.8 million, of which $206.9 million is located in foreign jurisdictions that upon distribution may be subject to withholding and other taxes.
• During the three months ended March 31, 2026, some foreign subsidiaries repatriated $13.0 million to the United States.
• Closing cash, cash equivalents and restricted cash as of March 31, 2026: $164.8 million, up $6.4 million or 4.0% from $158.4 million as of March 31, 2025.
• As of December 31, 2025, cash, cash equivalents and short-term investments totaled $328.4 million, of which $285.8 million was located in foreign jurisdictions that upon distribution may be subject to withholding and other taxes.
• Opening cash, cash equivalents and restricted cash as of December 31, 2025: $166.0 million.
• Interest and dividend income in other income, net for the three months ended March 31, 2026: $1.6 million, down $1.1 million or 40.8% from $2.7 million for the three months ended March 31, 2025.
• The company stated it believes existing cash, cash equivalents and short-term investments and sources of liquidity will be sufficient to satisfy cash requirements over the next 12 months.

Impact estimates