EXL announces $125 million accelerated share repurchase program

EXL (NASDAQ: EXLS) announced a $125 million accelerated share repurchase (ASR) with Morgan Stanley on March 17, 2026, funded from cash on hand and/or its credit facility.

Rhea-AI Summary

EXL (NASDAQ: EXLS) announced a $125 million accelerated share repurchase (ASR) with Morgan Stanley on March 17, 2026, funded from cash on hand and/or its credit facility. The ASR is part of a recently authorized $500 million common stock repurchase program and will settle based on VWAP pricing, less a discount.

The company said the ASR reflects management confidence in continued growth, AI-driven client traction, and free cash flow generation; the ultimate shares repurchased will depend on average daily volume-weighted prices during the ASR term and contractual adjustments.

Positive

• Announced $125 million ASR, reducing outstanding shares
• ASR is part of a $500 million authorized repurchase program
• Repurchase signals management confidence and supports EPS

Negative

• Repurchase may use credit facility borrowing, increasing leverage
• Final shares repurchased are uncertain due to VWAP-based adjustments

Argus Mar 17 session

+3.18% close to close Open Argus

Details

News Market Reaction – EXLS

In the Mar 17 session, EXLS gained 3.18%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement detailed a new $125 million accelerated share repurchase under EXLS’s broader $500...

Analysis

This announcement detailed a new $125 million accelerated share repurchase under EXLS’s broader $500 million buyback program, funded by cash and/or its credit facility. Historically, similar buyback actions have coincided with modestly positive one-day moves averaging 2.04%. Investors may track execution of the ASR, future capital allocation decisions, and how repurchases interact with EXLS’s data and AI growth strategy and earnings trajectory.

Key Figures

New ASR size: $125 million Repurchase program: $500 million Funding sources: Cash and/or credit facility +3 more

New ASR size

$125 million

Accelerated share repurchase with Morgan Stanley

Repurchase program

$500 million

Recently authorized common stock repurchase program

Funding sources

Cash and/or credit facility

Planned funding for $125M ASR

Private repurchase value

$63,373,143

Aggregate price for 1,551,970 shares (Dec 15, 2025)

Shares repurchased

1,551,970 shares

Private repurchase from Orogen Echo LLC

Purchase price per share

$40.834

Price in Dec 15, 2025 private repurchase

Previous Buybacks Reports

3 past events · Latest: Dec 15

Same Type 3 events

1. Dec 15

   Share repurchase

   24h Move

   +0.6%

   Private repurchase of 1,551,970 shares for $63.37M at VWAP-based price.

2. Jul 29

   ASR announcement

   24h Move

   +1.4%

   $125M accelerated share repurchase under existing $500M program.

3. Mar 18

   ASR announcement

   24h Move

   +4.1%

   Another $125M accelerated share repurchase program announcement.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

accelerated share repurchase, volume-weighted average prices, credit facility, free cash flow

4 terms

accelerated share repurchase financial

"it has entered into an accelerated share repurchase agreement (the “ASR”)"

An accelerated share repurchase is a deal where a company hires a bank to buy back a large block of its own stock immediately on the open market, with the bank later settling the exact number of shares over time. For investors it matters because the immediate reduction in shares outstanding can raise per‑share earnings and often supports the stock price, but it also uses company cash or borrowing and can change liquidity and future growth funding.

volume-weighted average prices financial

"based on the average of the daily volume-weighted average prices of the common stock"

Volume-weighted average price (VWAP) is the average trading price of a stock over a set period, where each trade’s price is weighted by how many shares were exchanged, so large trades influence the average more than small ones. Investors and traders use VWAP like a yardstick to judge whether a trade occurred at a good price relative to the market overall, similar to comparing the average price per pound when shopping where bigger purchases shift the average.

credit facility financial

"cash on hand and/or borrowing from its credit facility"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

free cash flow financial

"continue our growth trajectory and generate significant free cash flow"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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NEW YORK, March 17, 2026 (GLOBE NEWSWIRE) -- EXL [NASDAQ: EXLS], a global data and AI company, today announced that, as part of its capital allocation program, it has entered into an accelerated share repurchase agreement (the “ASR”) with Morgan Stanley & Co. LLC to repurchase $125 million of the company’s common stock.

Chairman and Chief Executive Officer Rohit Kapoor said, “EXL’s recognized industry expertise and leadership in embedding AI in our clients’ businesses are resonating strongly with the market and fueling our growth with new and existing clients. This ASR, a part of our recently authorized $500 million common stock repurchase program, represents confidence in our ability to continue our growth trajectory and generate significant free cash flow.”

Under the ASR, the company will pay an aggregate amount of $125 million to Morgan Stanley for an initial number of shares of the company’s common stock at the beginning of the transaction. The company plans to fund the repurchase with available cash on hand and/or borrowing from its credit facility. The ultimate number of shares of common stock that the company will repurchase under the ASR Agreement will be based on the average of the daily volume-weighted average prices of the common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 65,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include statements about the timing and manner of the final settlement under the ASR, our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.

Contacts: 

Andrew Thut 
Head of Investor Relations and Capital Markets 
ir@exlservice.com  

Keith Little   
Head of Public Relations
media.relations@exlservice.com  

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did EXL (EXLS) announce on March 17, 2026 about share repurchases?

They announced an $125 million accelerated share repurchase agreement with Morgan Stanley. According to the company, the ASR is part of a $500 million authorized buyback program and will settle based on average VWAP pricing, less a contractual discount.

How will EXL fund the $125 million ASR (EXLS)?

EXL will fund the ASR with available cash and/or borrowing from its credit facility. According to the company, payment of $125 million is made up front to Morgan Stanley, with final share count adjusted by VWAP during the ASR term.

What does the $125 million ASR mean for EXL shareholders (EXLS)?

The ASR generally reduces outstanding share count and can support EPS and shareholder value. According to the company, this move reflects confidence in growth and free cash flow while the exact share reduction depends on VWAP-based settlement adjustments.

Will the ASR change EXL’s (EXLS) total repurchase authorization?

Yes, the $125 million ASR is drawn from the company’s recently authorized $500 million repurchase program. According to the company, the ASR represents a portion of that authorization and reduces the remaining repurchase capacity accordingly.

How is the final number of shares determined in EXL’s ASR (EXLS)?

The ultimate shares repurchased are based on the average daily volume-weighted average price (VWAP) during the ASR term, less a discount. According to the company, adjustments in the ASR agreement will govern the final delivered share count.