EXL enters $125 million accelerated share repurchase agreement

NEW YORK - EXL (NASDAQ:EXLS), a $6.86 billion market cap data and AI company with a "GREAT" financial health rating according to InvestingPro, announced Tuesday it has entered into an accelerated share repurchase agreement (ASR) with Citibank, N.A. to buy back $125 million of its common stock.

Under the agreement, EXL will make an upfront payment of $125 million to Citibank for an initial number of shares. The final quantity of repurchased shares will be determined based on the average daily volume-weighted average prices during the term of the ASR, less a discount and subject to adjustments according to the agreement’s terms.

The company plans to fund the repurchase using available cash on hand and/or borrowing from its credit facility. This ASR is part of EXL’s existing $500 million stock repurchase program.

"The successful execution of our data- and AI-led strategy has positioned EXL as an industry leader in embedding AI in the workflow," said Rohit Kapoor, Chairman and Chief Executive Officer of EXL, in the press release statement.

EXL provides services and solutions focused on data and artificial intelligence to clients across industries including insurance, healthcare, banking, financial services, media and retail. The company was founded in 1999 and is headquartered in New York with more than 61,000 employees across six continents.

The announcement comes as part of the company’s broader capital allocation program, according to the press release.

In other recent news, EXL has made significant strides in the AI and data sectors. The company announced the availability of its Code Harbor and Smart Agent Assist solutions on the AWS Marketplace, which are designed to streamline code migration and improve operational efficiency. Furthermore, EXL has earned the AWS Generative AI Competency status, highlighting its expertise in delivering advanced generative AI solutions. In collaboration with Databricks, EXL introduced a new solution that reduces manual effort for code migration by up to 80%, targeting industries like insurance, banking, and healthcare.

Additionally, EXL has been recognized as a Microsoft Solutions Partner for Data and AI, showcasing its technological capabilities in managing data and creating AI solutions on Microsoft platforms. The company’s executive leadership emphasized the importance of this partnership in enhancing client services. On the financial front, Stifel analysts have maintained a Hold rating on EXLService stock with a target of $54, noting the company’s focus on AI and its projected revenue growth. EXL has reaffirmed its 2025 guidance, anticipating currency-neutral revenue growth of 11-13% and improved EBIT margins, with expectations of continued growth into 2026.

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