EXLS · 10-Q · 2026Q1 · Full report

FX / Currency Headwinds

ExlService Holdings, Inc. · 2026-04-28 · Importance 18 · Surprise 14

The company recorded a foreign exchange gain, net of $1.1 million for the three months ended March 31, 2026 (vs. $1.2 million in Q1 2025) driven by movements in major local currencies. Management cites exposure to the U.S. dollar versus the Indian rupee, Philippine peso, U.K. pound sterling and South African rand and notes hedging effects in International Growth Markets (2.5% FX benefit, net of hedging, to IGM revenue growth). The company holds $206.9 million of cash, cash equivalents and short-term investments in foreign jurisdictions as of March 31, 2026 (down from $285.8 million at year end) and repatriated $13.0 million during Q1 2026, which may be subject to withholding and other taxes upon distribution. FX volatility and hedging results materially influenced reported regional revenue and margins in the quarter and remain a specified risk in the MD&A.

Key facts

• Foreign exchange gain, net for the three months ended March 31, 2026: $1.1 million, compared to $1.2 million for the three months ended March 31, 2025.
• Foreign exchange gains and losses were primarily attributable to movements of the U.S. dollar against the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand during the three months ended March 31, 2026 versus the three months ended March 31, 2025.