EXLS · 10-Q · 2026Q1 · Full report

International Growth Markets Performance

ExlService Holdings, Inc. · 2026-04-28 · Importance 48 · Surprise 40

International Growth Markets revenue grew 13.4% year-over-year to $97.1 million in Q1 2026, with 8.0% from existing-client expansion, 2.9% from new clients and a 2.5% net benefit from foreign-exchange hedging. Despite revenue growth, IGM gross margin declined 250 basis points, primarily due to lower volumes in certain existing clients. Management is pursuing localization and leveraging North America investments to extend capabilities in IGM, but margin pressure in IGM underscores variability across geographies and client engagements. FX movements are explicitly called out as contributing to reported IGM growth.

Key facts

• The company operates delivery centers in India, the United States, the Philippines, South Africa, Colombia, Bulgaria, Romania, the United Kingdom, the Czech Republic, Mexico and the Republic of Ireland.