What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-28 compared with 2025-10-28 · 119 added, 255 removed, 139 unchanged (73% of the section changed)

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These factors include but are not limited to:

• our ability to maintain and grow client demand for our services and solutions, including anticipating and incorporating the latest technologies, for instance, artificial intelligence (“AI”), including generative AI into our offerings;

• use of AI technology presents competitive, operational, reputational and legal risks, and our use of AI technology may not be successful;

• impact on client demand by the selling cycle and terms of our client contracts;

• our ability to successfully transition to and implement new organization structure;

• fluctuations in our earnings;

• our ability to hire and retain enough sufficiently trained employees to support our operations or any changes in the senior management team;

including for our AI-related offerings;

• our ability to attract and retain enough sufficiently trained employees to support our operations or any changes in the senior management team;

• our ability to accurately estimate and/or manage costs;

• our ability to adjust our pricing terms or effectively manage our asset utilization levels to meet the changing demands of our clients and potential clients;

• cyber security incidents, data breaches, or other unauthorized disclosure of sensitive or confidential client and employee data;

• cyber security incidents, data breaches, additional cybersecurity and privacy risks from growing use of AI, or other unauthorized disclosure of sensitive or confidential client and employee data;

• reliance on third parties to deliver services and infrastructure for client critical services, and on third party data use rights for certain of our offerings;

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• our dependence on a limited number of clients and our ability to withstand the loss of a significant client;

• our ability to manage rapid infrastructure and personnel growth across countries;

• our ability to manage rapid infrastructure and personnel growth across countries, including losing key talent to competitors;

• our ability to successfully consummate or integrate strategic acquisitions including the impact from the impairment of goodwill and other intangible assets, if any;

• legal liability arising out of customer and third party contracts;

• increasing competition in our industry;

• increasing competition in our industry, including from other providers and from internal resources of our clients;

• our ability to make accurate estimates and assumptions in connection with the preparation of our consolidated financial statements;

• challenges related to upgrading our enterprise resource planning system;

• credit risk fluctuations in the market values of our investment and derivatives portfolios;

• telecommunications or technology disruptions or breaches, natural or other disasters, medical epidemics or pandemics, or acts of violence or war;

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• negative public reaction in the United States or elsewhere to offshore outsourcing;

• effects of political and economic conditions globally including newly imposed U.S tariffs and any additional responsive non-U.S tariffs, particularly in the geographies where we operate;

• our ability to make accurate estimates and assumptions in connection with the preparation of our consolidated financial statements;

• credit risk fluctuations in the market values of our investment and derivatives portfolios;

• our ability to execute our sustainability-related initiatives.

These and other factors are more fully discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

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We are 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.

We harness the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare, life sciences, banking and financial services, media and retail, communications and media, and energy and infrastructure, among others.

Our global delivery network, which includes highly trained industry and process specialists across the United States, the United Kingdom, Latin America, South Africa, Europe and Asia (primarily India and the Philippines), is a key asset.

We harness 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.

One of our key assets is our global delivery network, which includes highly trained industry and process specialists across the United States, the United Kingdom, Latin America, South Africa, Europe and Asia (primarily India and the Philippines).

We have operations 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.

In the first quarter of 2025, we implemented operational and structural changes to align with how our management reviews financial information and makes operating decisions.

The new operating model is comprised of Industry Market Units (“IMUs”) to focus on delivering higher value to clients leveraging our full suite of capabilities;

and Strategic Growth Units to focus on rapidly advancing our operational, analytics, data engineering, and AI capabilities specific to our chosen industries.

Our IMUs will focus on managing customer relationships and delivering the “One EXL” value proposition to clients, maintain a unified go-to-market approach and be integrally responsible for growth, profitability and client satisfaction.

Accordingly, our new reportable segments, aligned to our IMUs, are as follows:

• Healthcare and Life Sciences,

• Banking, Capital Markets and Diversified Industries,

• International Growth Markets

The primary changes in our new reportable segments reflect 1) the integration of our former Analytics reportable segment as a core capability within each of our IMUs, ensuring alignment with the specialized needs of our clients across IMUs, 2) the reorganization of our former Emerging Business reportable segment into a Banking, Capital Markets and Diversified Industries reportable segment, excluding Life Sciences, which is now a part of the new Healthcare and Life Sciences reportable segment, and 3) the formation of International Growth Markets as a separate business unit to represent all our service and solutions offerings to clients in the United Kingdom, Europe, Middle East, Asia-Pacific and South Africa geographies across all industry verticals.

The International Growth Markets business unit will help strategically expand our footprint in markets outside of North America and drive focus on offerings and expansion in those markets in new and existing clients.

In addition, our revenues by service type are now presented as data and AI-led and digital operations services.

Revenues attributable to geographical regions are now presented as North America (including the United States, Canada and Mexico), the United Kingdom and Europe, and Rest of World.

We have recast our segment disclosures for all prior periods presented to conform to the way we internally manage and monitor segment level performance of our business.

For the three months ended September 30, 2025, we generated revenues of $529.6 million compared to revenues of $472.1 million for the three months ended September 30, 2024, an increase of $57.5 million, or 12.2%.

For the nine months ended September 30, 2025, we generated revenues of $1,545.1 million compared to revenues of $1,356.9 million for the nine months ended September 30, 2024, an increase of $188.2 million, or 13.9%.

We serve cli ents mainly in North America, and the United Kingdom & Europe , with these two regions generating 82.5% and 14.9%, respectively, of our total revenues for the three months ended September 30, 2025, and 81.7% and 15.1%, respectively, of our total revenues for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, these two regions generated 82.5% and 14.8%, respectively, of our total revenues and 82.3% and 14.8%, respectively, of our total revenues for the nine months ended September 30, 2024.

For the three months ended September 30, 2025 and 2024, our total revenues from our top ten clients accounted for 34.5% and 34.2% of our total revenues, respectively.

For the nine months ended September 30, 2025 and 2024, our total revenues from our top ten clients accounted for 33.8% and 33.2% of our total revenues, respectively.

We manage and report financial information through four reportable segments, aligned to our Industry Market Units (“IMUs”):

Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets, which reflects the manner in which our management reviews financial information and makes operating decisions.

For the three months ended March 31, 2026, we generated revenues of $570.4 million compared to revenues of $501.0 million for the three months ended March 31, 2025, an increase of $69.4 million, or 13.8%.

We serve clients mainly in North America, and the United Kingdom & Europe, with these two regions generating 83.0% and 14.5%, respectively, of our total revenues for the three months ended March 31, 2026 and 82.9% and 15.1%, respectively, of our total revenues for the three months ended March 31, 2025.

For the three months ended March 31, 2026 and 2025, our total revenues from our top ten clients accounted for 34.6% and 33.7% of our total revenues, respectively.

Although we continue to develop relationships with new clients to diversify our client base, we believe that the loss of any of our top ten clients could have a material adverse effect on our financial performance.

We provide data and AI-led and digital operations services to our clients.

We provide data and AI-led solutions and services and digital operations solutions and services to our clients.

We market and sell our solutions and services to existing and prospective clients through our sales and client management teams, which are aligned by our IMUs.

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Data and AI-led:

Our data and AI-led revenue comes from AI-powered solutions and services in which we embed data and AI into client workflows.

Leveraging our depth of domain knowledge, analytics, data management and digital engineering expertise, our industry-specific offerings are designed to help clients accelerate growth, improve customer experience, enhance efficiency, and deliver lasting competitive advantages.

As clients evolve from digital operations to data and AI-powered operations and outcomes, these capabilities represent the next stage of enterprise transformation.

Data and AI-led revenue is derived from our Data Management, Analytics, AI services and solutions businesses.

It includes revenue from fully integrated business operations like payment integrity services and platform-based solutions and services, which combine operations, technology, data, analytics, and AI.

It also includes revenue from operations that embed data and AI within clients’ operational workflows.

Digital operations:

Our digital operations revenue comes from our industry-specific solutions and services that help clients run essential business functions with greater speed, accuracy, and efficiency.

We apply deep industry expertise and tailored technology—whether our proprietary technology or client technology—to solve complex challenges and drive measurable outcomes.

Digital operations revenue is derived from managed services that blend our deep domain expertise with industry-specific solutions and services to operate clients’ business functions with enhanced productivity, greater speed and improved accuracy.

These digital operations deployments form the foundation for future client transformation opportunities to infuse AI into client workflows and unlock even greater value.

Our industry market units, which provide data and AI-led and digital operations services, are described below:

We combine our cloud-first digital insurance software solutions and industry expertise with generative AI, machine learning, advanced analytics, and platforms, to enable insurance businesses to transform operations and embed artificial intelligence into workflows.

Our data and AI-powered operations and services span across the insurance value chain.

We provide services to insurers in the areas of property and casualty, life, disability, annuity, and retirement services.

Additionally, we serve insurance brokers, reinsurers, and insurtech companies.

Our offerings include digital marketing, new business acquisition, actuarial, underwriting support, claims processing, premium and benefit administration, policy servicing, premium audit, surveys, billing and collection, commercial and residential surveys, finance and accounting and customer service.

This includes our Insurance Large Language Model (“LLM”), a specialized generative AI platform for claims, underwriting and subrogation, developed leveraging our deep experience and proprietary data in the insurance space.

Our reportable segments, aligned to our IMUs, which provide data and AI-led solutions and services and digital operations solutions and services, are described below:

We serve insurance brokers, reinsurers, and insurtech companies and provide services to insurers in the areas of property and casualty, life, disability, annuity, and retirement services.

Our offerings include claims management, premium and benefit administration, agency management, account reconciliation, actuarial and risk analytics, policy research, digital marketing, new business acquisition, underwriting support, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, finance and accounting, and customer service using digital technology, AI, including agentic AI, generative AI, machine learning (“ML”) and advanced automation.

We also combine our cloud-first digital insurance software solutions and industry expertise with agentic AI, generative AI, machine learning, advanced analytics, and platforms.

Additionally, we provide third-party administration for life and annuity insurance through our LifePRO® and Life Digital Suite SaaS platforms and also offer subrogation services to property and casualty insurers using our Subrosource® BPaaS platform.

Healthcare and Life Sciences:

We work with clients across the healthcare ecosystem to meet their current and dynamic business challenges.

We deliver integrated solutions and services at the intersection of domain, data, and AI to enable AI transformation for healthcare payers and providers, pharmacy benefit managers (“PBMs”), and life sciences organizations.

Through the provision of a range of data and AI-powered operations and solutions, we focus on streamlining healthcare administration processes to enhance operational efficiency, aimed at reducing costs for both providers and consumers and improving consumer experience.

We leverage innovative technologies to provide offerings intended to simplify complex workflows, minimize bureaucratic hurdles, and improve overall effectiveness.

For healthcare payers, we offer pre and post-pay auditing services, payment analytics, payment integrity, a care management platform and services and patient navigation.

For healthcare providers, we offer revenue cycle management, digital transformation, data and analytics and call center modernization.

We serve U.S.-based healthcare payers, providers, pharmacy benefit managers (“PBMs”), and life sciences organizations by combining deep healthcare and life sciences domain expertise with data, analytics and AI-led insights and technology-enabled services that transform how care is delivered, managed and paid.

We provide care management, utilization management, disease management, payment integrity, revenue optimization and customer engagement, commercial analytics and regulatory support services to improve healthcare outcomes, enhanced patient and provider experience, optimized healthcare spending and streamline healthcare administration processes by simplifying complex workflows.

For healthcare payers, we offer payment integrity services, pre and post-pay auditing services, payment analytics, subrogation and claims recovery, care management and patient navigation solutions.

For healthcare providers, we offer revenue cycle management, digital transformation, data-driven analytics and contact center solutions.

For PBMs, we provide digital transformation, data and analytics and call center modernization.

Within the life sciences space, we provide finance and accounting operations and data analytics.

Across our segments, we leverage AI, analytics, and cloud-based solutions to enhance value-based care, optimize claims, and ensure regulatory compliance.

Our life sciences offerings combine domain expertise, data engineering, AI-driven insight generation, and digital operations to deliver outcomes across commercial, clinical, regulatory, and patient support functions.

We leverage AI, analytics, and cloud-based solutions to enhance value-based care, optimize claims, and ensure regulatory compliance.

Banking, Capital Markets, and Diversified Industries:

Our Banking and Capital Markets and Diversified Industries group delivers comprehensive solutions across retail and commercial banking, credit card services, payment services, fintech, banking infrastructure services, capital markets, mortgage services, utilities, retail and consumer packaged goods, media, communications and entertainment, travel and leisure, transportation and logistics, and other business services industries.

By integrating domain expertise with AI-driven data management, we empower financial institutions to innovate, enhance operational agility, and navigate evolving market demands.

Our tailored services span retail banking operations such as digital lending solutions that enhance underwriting and compliance, sales and demand generation, omni-channel marketing, digital onboarding, know your customer (“KYC”)/anti-money laundering (“AML”) compliance, and collections;

credit card services including customer acquisition, fraud management, and payment processing;

and payment services structured for secure, multi-currency transaction processing.

Additionally, we support fintechs with AI-driven hyper-personalization and analytics, while our capital markets solutions cover investment banking, asset management, custodian banking, and fund administration.

Mortgage services include loan origination, account servicing, default management, and title settlement services.

Our industry-leading AI and automation-driven service offerings drive efficiency and innovation across financial services.

Our enterprise services and solutions include domain-specific operations, finance and accounting, customer experience management, back-office operations, and revenue enhancement, such as pricing and billing, enabling our clients to deliver superior economic performance.

For example, in the retail and consumer packaged goods sectors, we provide supply chain management services and AI-led advanced analytical services including merchandising, pricing, and demand forecasting and for our clients in the utilities sector, we offer AI-enabled operations and solutions related to end-to-end customer life cycle management, including onboarding and terminations, engineering field services, customer service, billing, and debt management and collections.

Our Banking and Capital Markets and Diversified Industries group delivers comprehensive solutions across retail and commercial banking, credit card and payment services, fintech, wealth and retirement services, capital markets, utilities, retail and consumer packaged goods, communications, media and entertainment, travel and leisure, transportation and logistics, infrastructure and other business services industries.

By integrating deep domain expertise with AI-driven decision-making, we enable financial institutions to innovate, enhance operational agility, and adapt to evolving market demands.

We provide risk management solutions, marketing and customer analytics solutions to our clients, along with our integrated operations services that encompass the full range of banking

operations, including digital lending solutions that improve underwriting and compliance, omni-channel marketing, digital onboarding, know your customer (“KYC”)/anti-money laundering (“AML”) compliance, collections, fraud prevention, and customer servicing, among others.

Our industry-leading AI and automation-driven service offerings drive operational efficiency and foster innovation across the financial services and other industries.

Our enterprise services and solutions include domain-specific operations, integrated finance and accounting services, customer experience management, back-office operations, and revenue enhancement, such as pricing and billing, enabling our clients to deliver enhanced operational efficiency, and high-quality customer experiences.

For example, in the retail and consumer packaged goods sectors, we enable advanced supply chain performance through AI-driven analytics services supporting smarter merchandising, dynamic pricing, and accurate demand forecasting and for our clients in the utilities sector, we offer AI-enabled operations and solutions related to end-to-end customer life cycle management, including onboarding and terminations, engineering field operations, billing, and debt management.

International Growth Markets:

Our International Growth Markets (“IGM”) unit is focused on extending our global reach in growth markets outside North America.

This provides us with opportunities to leverage our investments, experience, and expertise from the North America market to expand our global client base, drive further growth, and bring us closer to our

customers across the world.

IGM consists of dedicated teams servicing clients in the banking and capital markets, insurance, life sciences, energy and infrastructure, retail, consumer goods, and travel industries in growth markets.

This unit is instrumental in localizing our global capabilities in these industry segments to align with the local regulatory, cultural, linguistic and economic needs.

Across all regions in which we operate, we combine deep domain experience with our data and AI expertise to help clients innovate, enhance operational agility, adapt to changing market demands, and drive better business outcomes.

Our International Growth Markets (“IGM”) IMU is focused on strengthening our global footprint outside of North America.

We ensure customized delivery while leveraging EXL’s global capabilities in data, AI, and digital operations to drive differentiated business outcomes for our clients in growth markets.

IGM consists of dedicated teams servicing clients and localizing our global capabilities in insurance, life sciences, banking and capital markets, energy and infrastructure, retail, consumer goods, and travel industries in growth markets.

We charge for our services using various pricing models like time-and-material pricing, full-time-equivalent pricing, transaction-based pricing, outcome-based pricing, subscription-based pricing and other alternative or emerging pricing models.

Outcome-based pricing arrangements is an example of a non-linear pricing model where our revenues from platforms and solutions and the services we provide are compensated based on our clients’ usage or savings rather than the efforts we deploy to provide these services.

Outcome-based pricing arrangements are an example of a non-linear pricing model where our revenues from platforms and solutions and the services we provide are compensated based on our clients’ usage or savings rather than the efforts we deploy to provide these services.

We continue to observe a shift in the industry pricing models toward transaction-based pricing, outcome-based pricing and other alternative pricing models.

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These alternative pricing models place the focus on operating efficiency in order to maintain or improve our gross margins.

The Organization for Economic Cooperation and Development, issued a Pillar II model for implementing a 15% global minimum tax effective January 1, 2024.

The application of the rules relating to Pillar II continue to evolve, and there are countries that are still in the process of issuing attendant rules and regulations, including available transitional safe harbor rules.

The two countries where we operate but do not meet the available safe harbor rules are the Republic of Ireland and the Philippines.

The Pillar II impacts for the Republic of Ireland and the Philippines are not significant and have been properly reflected in our financial statements.

We will continue to monitor Pillar II developments and assess any future impacts.

On July 4, 2025, President Trump signed new tax legislation known as the One Big Beautiful Bill Act (“OBBBA”), which effectively extends certain provisions of the 2017 Tax Cuts and Jobs Act, including adjustments to several provisions that were scheduled to sunset, phase out, or phase in.

As a result of our election to expense research or experimental expenditures incurred in the United States and the related transition provisions, our U.S.

cash taxes for 2025 will decrease, while there will be no significant impact on its effective tax rate.

Critical Accounting Policies and Estimates

In the first quarter of 2025, we implemented operational and structural changes which resulted in the realignment of our reporting segments.

Refer to Note 3- Segment Information and Note 10- Goodwill and Other Intangible Assets to our unaudited consolidated financial statements for further details.

Goodwill has been re-allocated to reporting units based on the relative fair value approach.

We tested goodwill for impairment prior to the segment realignment and immediately thereafter, for events and conditions identified in accordance with the guidance in ASC Topic 350, Intangibles- Goodwill and Other .

The fair value of our reporting units was calculated using a discounted cash flow model using estimated future cash flows.

The results of our evaluation demonstrated that the fair value of each reporting unit exceeded its book value as of the date of the segment realignment.

There have been no significant changes in our critical accounting policies and estimates during the nine months ended September 30, 2025, as compared to the critical accounting policies and estimates referred in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under “Critical Accounting Policies and Estimates” and Note 2 - Summary of Significant Accounting Policies to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2026, as compared to the critical accounting policies and estimates referred in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under “Critical Accounting Estimates” and Note 2 - Summary of Significant Accounting Policies to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Results of Operations

The following table summarizes our results of operations for the three months ended September 30, 2025 and 2024:

The following table summarizes our results of operations:

(dollars in millions)

Three months ended September 30, 2025 Percentage of Revenues, net Three months ended September 30, 2024 Percentage of Revenues, net Dollar change Percentage change

Three months ended March 31, 2026 Three months ended March 31, 2025

Percentage of Revenues, net Percentage of Revenues, net Dollar change Percentage change

(A) (B) (C=A-B)

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Income before earnings from equity affiliates 67.1 11.8 % 66.7 13.3 % 0.4 0.6 %

Loss from equity-method investment (0.1) — % — — % (0.1) — %

Gain/(loss) from equity-method investment — — % (0.1) — % 0.1 (98.2) %

Net income $ 67.1 11.8 % $ 66.6 13.3 % $ 0.5 0.8 %

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Due to rounding, the numbers presented in the tables included in this Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided.

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025

Revenues, net:

The following table summarizes our revenues by reportable segments:

Three months ended September 30, Dollar change Percentage

change Percentage of Total Revenues for the three months ended September 30,

2025 2024 2025 2024

(dollars in millions)

Insurance $ 180.5 $ 166.4 $ 14.1 8.5 % 34.1 % 35.3 %

Healthcare and Life Sciences 135.3 111.2 24.1 21.6 % 25.5 % 23.6 %

Banking, Capital Markets and Diversified Industries 121.0 108.3 12.7 11.7 % 22.8 % 22.9 %

International Growth Markets 92.8 86.2 6.6 7.7 % 17.6 % 18.2 %

Total revenues, net $ 529.6 $ 472.1 $ 57.5 12.2 % 100.0 % 100.0 %

Revenues for the three months ended September 30, 2025 were up by $57.5 million, or 12.2%, compared to the three months ended September 30, 2024, primarily driven by the expansion of business from our existing clients across all reportable segments by 9.7% and revenue from new client wins, including revenue from our August 2024 acquisition of Incandescent Technologies, Inc.

(“ITI Data”) by 2.5% during the three months ended September 30, 2025.

Revenue growth in Insurance by 8.5% was driven by the expansion of business from our existing clients by 7.7% and new clients by 0.8% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Revenue growth in Healthcare and Life Sciences by 21.6% was driven by the expansion of business from our existing clients by 20.5% and new clients including revenue from ITI Data by 1.1% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Revenue growth in Banking, Capital Markets and Diversified Industries by 11.7% was driven by the expansion of business from our existing clients by 5.4% and new clients including revenue from ITI Data by 6.3% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Revenue growth in International Growth Markets by 7.7% was driven by the expansion of business from our existing clients by 5.8% and new clients including revenue from ITI Data by 2.6%, partially offset by a foreign exchange loss, net of hedging by 0.7% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Cost of Revenues and Gross Margin :

The following table sets forth cost of revenues and gross margin of our reportable segments:

Cost of Revenues Gross Margin

Three months ended September 30, Dollar change Percentage

change Three months ended September 30, Percentage

Three months ended March 31, Dollar change Percentage

change Percentage of Total Revenues for the three months ended

2026 2025 2026 2025

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International Growth Markets 97.1 85.7 11.4 13.4 % 17.0 % 17.1 %

Total $ 325.6 $ 293.8 $ 31.8 10.8 % 38.5 % 37.8 % 0.7 %

Cost of revenues for the three months ended September 30, 2025 increased by $31.8 million, or 10.8% compared to the three months ended September 30, 2024.

The increase in cost of revenues was primarily due to increases in employee-related

costs of $38.4 million on account of higher headcount and wage inflation, higher facilities, technology and other operating costs of $2.9 million, partially offset by lower mail and data expenses in our direct marketing business of $4.3 million and a foreign exchange gain, net of hedging of $5.2 million.

Our gross margin for the three months ended September 30, 2025 was 38.5%, compared to 37.8% for the three months ended September 30, 2024, an increase of 70 basis points (“bps”) primarily driven by higher revenues and operational efficiencies, partially offset by increases in employee-related costs across all reportable segments during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in cost of revenues in Insurance by $7.8 million for the three months ended September 30, 2025 was primarily due to increases in employee-related costs of $12.9 million on account of higher headcount and wage inflation, higher other operating costs of $0.9 million, partially offset by lower mail and data expenses in our direct marketing business of $4.3 million and a foreign exchange gain, net of hedging of $1.7 million.

Gross margin in Insurance increased by 70 bps, primarily due to higher volumes in certain existing clients during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in cost of revenues in Healthcare and Life Sciences by $13.4 million for the three months ended September 30, 2025 was primarily due to increases in employee-related costs of $13.6 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, higher facilities and other operating costs of $1.0 million, partially offset by a foreign exchange gain, net of hedging of $1.2 million.

Gross margin in Healthcare and Life Sciences increased by 30 bps primarily due to higher volumes in certain existing clients during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in cost of revenues in Banking, Capital Markets and Diversified Industries by $6.6 million for the three months ended September 30, 2025 was primarily due to increases in employee-related costs of $7.2 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, higher technology and other operating costs of $0.6 million, partially offset by a foreign exchange gain, net of hedging of $1.2 million.

Gross margin in Banking, Capital Markets and Diversified Industries increased by 110 bps, primarily due to higher revenues and operational efficiencies during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in cost of revenues in International Growth Markets by $4.0 million for the three months ended September 30, 2025 was primarily due to increases in employee-related costs of $4.7 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, higher technology and other operating costs of $0.4 million, partially offset by a foreign exchange gain, net of hedging of $1.1 million.

Gross margin in International Growth Markets increased by 20 bps, primarily due to higher volumes in certain existing clients during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Selling, General and Administrative (“SG&A”) Expenses.

SG&A expenses as a percentage of net revenues increased by 1.1% to 21.3% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in SG&A expenses by $17.6 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was primarily due to increases in employee-related costs of $17.0 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data and increase in investments in digital and generative AI capabilities and other operating costs of $0.6 million during the three months ended September 30, 2024, compared to the three months ended September 30, 2025.

Depreciation and Amortization.

Depreciation and amortization expenses as a percentage of net revenues remained flat during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in depreciation and amortization expense by 9.6% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was primarily due to investments in infrastructure, technology assets and digital capabilities.

Income from Operations.

The increase in income from operations by 9.8% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was primarily due to higher revenues and gross margins, partially offset by higher SG&A expenses.

Foreign Exchange Gain, net.

We recorded a foreign exchange loss, net of $1.0 million for the three months ended September 30, 2025, compared to a foreign exchange gain, net of $0.3 million for the three months ended September 30, 2024.

Foreign exchange gains and losses are primarily attributable to the movement 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 September 30, 2025, compared to the three months ended September 30, 2024.

Interest expense.

The decrease in interest expense by $0.6 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was primarily due to lower average borrowings and a lower average effective interest rate of 5.7% during the three months ended September 30, 2025, compared to 6.5% during the three months ended September 30, 2024.

Other Income, net.

Three months ended September 30, Dollar

change Percentage

(dollars in millions)

Gain on sale and fair value mark-to-market on investments $ 2.2 $ 1.8 $ 0.4 24.3 %

Interest and dividend income 2.1 2.5 (0.4) (16.2) %

Others, net 0.2 — 0.2 111.5 %

Other income, net $ 4.5 $ 4.3 $ 0.2 1.9 %

Other income, net increased marginally by $0.2 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Income Tax Expense.

The effective tax rate decreased from 22.6% during the three months ended September 30, 2024 to 22.1% during the three months ended September 30, 2025.

We recorded income tax expense of $16.5 million and $15.5 million for the three months ended September 30, 2025 and 2024, respectively.

The increase in income tax expense was primarily as a result of higher profit and lower excess tax benefits, partially offset by lower state taxes and decrease in non-deductible expenses during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in net income by 9.7% during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was attributable to the aforementioned factors.

Results of Operations

The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024:

(dollars in millions)

Nine months ended September 30, 2025 Percentage of Revenues, net Nine months ended September 30, 2024 Percentage of Revenues, net Dollar change Percentage change

(A) (B) (C=A-B)

Revenues, net $ 570.4 $ 501.0 $ 69.4 13.8 % 100.0 % 100.0 %

Cost of revenues (1)

953.6 61.7 % 849.3 62.6 % 104.3 12.3 %

Gross profit (1)

591.5 38.3 % 507.6 37.4 % 83.9 16.5 %

Operating expenses:

General and administrative expenses 185.2 12.0 % 167.2 12.3 % 18.0 10.8 %

Selling and marketing expenses 127.8 8.3 % 109.0 8.0 % 18.8 17.2 %

Depreciation and amortization expense 42.8 2.8 % 39.0 2.9 % 3.8 9.4 %

Total operating expenses 355.8 23.0 % 315.2 23.2 % 40.6 12.8 %

Income from operations 235.7 15.3 % 192.4 14.2 % 43.3 22.5 %

Foreign exchange gain, net 2.4 0.2 % 0.7 — % 1.7 255.1 %

Interest expense (13.3) (0.9) % (14.1) (1.0) % 0.8 (5.6) %

Other income, net 14.8 1.0 % 11.8 0.9 % 3.0 24.9 %

Income before income tax expense and earnings from equity affiliates 239.6 15.5 % 190.8 14.1 % 48.8 25.6 %

Income tax expense 48.5 3.1 % 43.1 3.2 % 5.4 12.6 %

Income before earnings from equity affiliates 191.1 12.4 % 147.7 10.9 % 43.4 29.4 %

Loss from equity-method investment (0.3) — % (0.1) — % (0.2) 364.8 %

Net income $ 190.8 12.3 % $ 147.6 10.9 % $ 43.2 29.2 %

(1) Exclusive of depreciation and amortization expense.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

The following table summarizes our revenues by reportable segments:

Nine months ended September 30, Percentage

change Percentage of Total Revenues for the nine months ended September 30,

2025 2024 Dollar change 2025 2024

(dollars in millions)

Insurance $ 524.8 $ 483.1 $ 41.7 8.6 % 34.0 % 35.6 %

Healthcare and Life Sciences 390.4 318.0 72.4 22.8 % 25.3 % 23.4 %

Banking, Capital Markets and Diversified Industries 359.8 316.1 43.7 13.8 % 23.3 % 23.3 %

International Growth Markets 270.1 239.7 30.4 12.7 % 17.4 % 17.7 %

Total revenues, net $ 1,545.1 $ 1,356.9 $ 188.2 13.9 % 100.0 % 100.0 %

Revenues for the nine months ended September 30, 2025 were up by $188.2 million, or 13.9%, compared to the nine months ended September 30, 2024, primarily driven by the expansion of business from our existing clients across all reportable segments by 10.8% and revenue from new client wins, including revenue from ITI Data by 3.1% during the nine months ended September 30, 2025.

Revenue growth in Insurance by 8.6% was driven by the expansion of business from our existing clients by 7.8% and new clients by 0.8% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Revenue growth in Healthcare and Life Sciences by 22.8% was driven by the expansion of business from our existing clients by 21.5% and new clients including revenue from ITI Data by 1.3% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Revenue growth in Banking, Capital Markets and Diversified Industries by 13.8% was driven by the expansion of business from our existing clients by 6.0% and new clients including revenue from ITI Data by 7.8% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Revenue growth in International Growth Markets by 12.7% was driven by the expansion of business from our existing clients by 9.2% and new clients including revenue from ITI Data by 4.0%, partially offset by a foreign exchange loss, net of hedging by 0.5% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Revenues for the three months ended March 31, 2026 were up by $69.4 million, or 13.8%, compared to the three months ended March 31, 2025, driven by the expansion of business from our existing clients across all reportable segments by 11.8% and revenue from new clients wins by 2.0% during the three months ended March 31, 2026.

Revenue growth in Insurance by 12.7% was driven by the expansion of business from our existing clients by 11.5% and new clients by 1.2% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Revenue growth in Healthcare and Life Sciences by 21.0% was driven by the expansion of business from our existing clients by 20.5% and new clients by 0.5% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Revenue growth in Banking, Capital Markets and Diversified Industries by 8.2% was driven by the expansion of business from our existing clients by 4.1% and new clients by 4.1% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Revenue growth in International Growth Markets of 13.4% was driven by the expansion of business from our existing clients by 8.0%, new clients by 2.9% and a foreign exchange gain, net of hedging by 2.5% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Cost of Revenues and Gross Margin:

1 unchanged sentence

Cost of Revenues Gross Margin

Nine months ended September 30, Dollar change Percentage change Nine months ended September 30, Percentage change

Three months ended March 31, Dollar change Percentage

change Three months ended March 31, Percentage

2026 2025 2026 2025

5 unchanged sentences

Total $ 348.3 $ 307.7 $ 40.6 13.2 % 38.9 % 38.6 % 0.3 %

Cost of revenues for the nine months ended September 30, 2025 increased by $104.3 million, or 12.3%, compared to the nine months ended September 30, 2024.

The increase in cost of revenues was primarily due to increases in employee-related costs of $116.1 million on account of higher headcount and wage inflation, higher facilities, technology and other operating costs of $13.3 million, partially offset by lower mail and data expenses in our direct marketing business of $13.3 million and a foreign exchange gain, net of hedging of $11.8 million.

Our gross margin for the nine months ended September 30, 2025 was 38.3% compared to 37.4% for the nine months ended September 30, 2024, an increase of 90 bps primarily driven by higher revenues and operational efficiencies, partially offset by increases in employee-related costs during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in cost of revenues in Insurance by $20.0 million for the nine months ended September 30, 2025 was primarily due to increases in employee-related costs of $35.7 million on account of higher headcount and wage inflation, higher technology costs of $2.8 million, partially offset by lower mail and data expenses in our direct marketing business of $13.3 million, other operating costs of $1.2 million and a foreign exchange gain, net of hedging of $4.0 million.

Gross margin in Insurance increased by 140 bps, primarily due to higher revenues and operational efficiencies during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in cost of revenues in Healthcare and Life Sciences by $41.8 million for the nine months ended September 30, 2025 was primarily due to increases in employee-related costs of $39.8 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, higher facilities costs of $1.6 million, higher technology and other operating costs of $3.1 million, partially offset by a foreign exchange gain, net of hedging of $2.7 million.

Gross margin in Healthcare and Life Sciences decreased by 20 bps, primarily due to lower revenues in certain existing clients during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in cost of revenues in Banking, Capital Markets and Diversified Industries by $24.5 million for the nine months ended September 30, 2025 was primarily due to increases in employee-related costs of $23.4 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, higher technology costs of $1.6 million, higher facilities and other operating costs of $2.4 million, partially offset by a foreign exchange gain, net of hedging of $2.9 million.

Gross margin in Banking, Capital Markets and Diversified Industries increased by 80 bps, primarily due to higher revenues and operational efficiencies during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in cost of revenues in International Growth Markets by $18.0 million for the nine months ended September 30, 2025 was primarily due to increases in employee-related costs of $17.2 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, higher technology and other operating costs of $3.0 million, partially offset by a foreign exchange gain, net of hedging of $2.2 million.

Gross margin in International Growth Markets increased by 60 bps, primarily due to higher revenues and operational efficiencies during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Cost of revenues for the three months ended March 31, 2026 increased by $40.6 million, or 13.2%, compared to the three months ended March 31, 2025.

The increase in cost of revenues was due to increases in employee-related costs of $35.5 million on account of higher headcount and wage inflation, and higher technology, facilities and other operating costs of $8.8 million, partially offset by a foreign exchange gain, net of hedging of $3.7 million.

Our gross margin for the three months ended March 31, 2026 was 38.9%, compared to 38.6% for the three months ended March 31, 2025, an increase of 30 basis points (“bps”) primarily driven by higher revenues and operational efficiencies, partially offset by lower volumes in certain existing clients during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

The increase in cost of revenues in Insurance by $11.6 million for the three months ended March 31, 2026 was due to increases in employee-related costs of $11.2 million on account of higher headcount and wage inflation, and higher technology costs of $1.8 million, partially offset by a foreign exchange gain, net of hedging of $1.1 million and lower other operating costs of $0.3 million.

Gross margin in Insurance increased by 110 bps, primarily due to higher revenues and operational efficiencies during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

The increase in cost of revenues in Healthcare and Life Sciences by $12.6 million for the three months ended March 31, 2026 was due to increases in employee-related costs of $9.3 million on account of higher headcount and wage inflation, higher technology costs of $1.6 million, and higher facilities and other operating costs of $2.7 million, partially offset by foreign exchange gain, net of hedging of $1.0 million.

Gross margin in Healthcare and Life Sciences increased by 140 bps, primarily due to higher volumes in certain existing clients during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

The increase in cost of revenues in Banking, Capital Markets and Diversified Industries by $6.7 million for the three months ended March 31, 2026 was due to increases in employee-related costs of $6.9 million on account of higher headcount and wage inflation, and higher technology costs of $1.1 million, partially offset by a foreign exchange gain, net of hedging of $1.0 million and lower other operating costs of $0.3 million.

Gross margin in Banking, Capital Markets and Diversified Industries decreased by 40 bps, primarily due to lower volumes in certain existing clients during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

The increase in cost of revenues in International Growth Markets by $9.7 million for the three months ended March 31, 2026 was due to increases in employee-related costs of $8.1 million on account of higher headcount and wage inflation, and higher technology, facilities and other operating costs of $2.2 million, partially offset by a foreign exchange gain, net of hedging of $0.6 million.

Gross margin in International Growth Markets decreased by 250 bps, primarily due to lower volumes in certain existing clients during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Selling, General and Administrative (“SG&A”) Expenses.

SG&A expenses as a percentage of net revenues remained flat at 20.3% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in SG&A expenses by $36.8 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was primarily due to increases in employee-related costs of $35.0 million on account of higher headcount and wage inflation, including incremental costs related to the acquisition of ITI Data, increase in investments in digital and generative AI capabilities of $2.1 million, higher sales and marketing costs of $1.0 million and other operating costs of $1.8 million.

This increase in SG&A was partially offset by one-time restructuring and litigation settlement costs of $3.1 million incurred during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2025.

SG&A expenses as a percentage of net revenues increased from 20.2% during the three months ended March 31, 2025 to 20.4% during the three months ended March 31, 2026.

The increase in SG&A expenses by $15.0 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025 was primarily due to increases in employee-related costs of $11.8 million on account of higher headcount and wage inflation, increased investments in digital and generative AI capabilities of $1.9 million, and higher sales and marketing and other operating costs of $1.3 million.

Depreciation and Amortization.

Depreciation and amortization expenses as a percentage of net revenues decreased by 0.1% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in depreciation and amortization expense by 9.4% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was primarily due to investments in infrastructure, technology assets and digital capabilities.

Depreciation and amortization expenses as a percentage of net revenues decreased by 0.2% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

The increase in depreciation and amortization expense by 3.3% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025 was primarily due to investments in infrastructure, technology assets and digital capabilities.

Income from Operations.

The increase in income from operations by 22.5% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was primarily due to higher revenues and gross margins, partially offset by higher SG&A expenses.

The increase in income from operations by 17.1% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025 was primarily due to higher revenues and gross margins, partially offset by higher SG&A expenses.

Foreign Exchange Gain, net.

We recorded a foreign exchange gain, net of $2.4 million for the nine months ended September 30, 2025, compared to a foreign exchange gain, net of $0.7 million for the nine months ended September 30, 2024.

We recorded a foreign exchange gain, net of $1.1 million for the three months ended March 31, 2026, compared to a foreign exchange gain, net of $1.2 million for the three months ended March 31, 2025.

Foreign exchange gains and losses are primarily attributable to the movement of the U.S.

dollar against the Indian rupee, the Philippine peso, the U.K.

pound sterling and the South African rand during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

pound sterling and the South African rand during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Interest expense .

The decrease in interest expense by $0.8 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was primarily due to lower average borrowings and a lower average effective interest rate of 5.7% during the nine months ended September 30, 2025, compared to 6.3% during the nine months ended September 30, 2024.

The decrease in interest expense by $0.1 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025 was primarily due to a lower average effective interest rate.

Other Income, net.

Nine months ended September 30,

2025 2024 Dollar change Percentage change

Three months ended March 31, Dollar change Percentage

(dollars in millions)

Gain on sale and fair value mark-to-market on investments $ 6.4 $ 3.9 $ 2.5 62.3 %

Interest and dividend income $ 1.6 $ 2.7 $ (1.1) (40.8) %

Fair value changes of contingent consideration — 0.6 (0.6) (100.0) %

Gain on sale and fair value mark-to-market on investments 1.5 1.9 (0.4) (23.5) %

Others, net (0.6) 0.1 (0.7) NM (1)

1 unchanged sentence

(1) Not Meaningful

The increase in other income, net by $3.0 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was primarily due to higher yield on our investments, and reversal of certain contingent liabilities of $0.9 million that were no longer required during the nine months ended September 30, 2025, partially offset by reversal of contingent consideration liability of $0.6 million related to our June 2022 acquisition of Inbound Media Group, LLC during the nine months ended September 30, 2024.

Other income, net decreased by $2.2 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025 due to lower yield on our investments and higher other expenses.

Income Tax Expense .

The effective tax rate decreased from 22.6% during the nine months ended September 30, 2024 to 20.3% during the nine months ended September 30, 2025.

We recorded income tax expense of $48.5 million and $43.1 million for the nine months ended September 30, 2025 and 2024, respectively.

The increase in income tax expense was primarily as a result of higher profit and an increase in non-deductible expenses, partially offset by lower state taxes and higher excess tax benefits during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

The increase in net income by 29.2% during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was attributable to the aforementioned factors.

The effective tax rate for the three months ended March 31, 2026 was 26.6%, an increase from 16.9% for the three months ended March 31, 2025.

We recorded income tax expense of $24.3 million and $13.5 million for the three months ended March 31, 2026 and 2025, respectively.

The increase in income tax expense was primarily as a result of lower excess tax benefits related to stock-based compensation of $13.2 million and higher profit, partially offset by a decrease in non-deductible compensation expenses, as compared to the three months ended March 31, 2025.

The increase in net income by 0.8% during the three months ended March 31, 2026, compared to the three months ended March 31, 2025 was attributable to the aforementioned factors.

Liquidity and Capital Resources

Nine months ended September 30, Dollar Change Percentage Change

Three months ended March 31, Dollar change Percentage change

(dollars in millions)

1 unchanged sentence

Net cash provided by operating activities 1.7 3.2 (1.5) (47.0) %

Net cash used for investing activities (82.6) (94.5) 11.9 (12.6) %

Net cash used for financing activities (147.9) (52.2) (95.7) 183.5 %

Net cash provided by/(used for) investing activities 44.0 (22.3) 66.3 (297.7) %

Net cash (used for)/provided by financing activities (44.6) 3.4 (48.0) NM (1)

Effect of exchange rate changes (2.3) 2.7 (5.0) (186.3) %

Closing cash, cash equivalents and restricted cash $ 164.8 $ 158.4 $ 6.4 4.0 %

As of September 30, 2025 and December 31, 2024, we had $390.1 million and $340.6 million, respectively, in cash, cash equivalents and short-term investments, of which $349.7 million and $296.0 million, respectively, is located in foreign jurisdictions that upon distribution may be subject to withholding and other taxes.

We periodically evaluate opportunities to distribute cash among our group entities to fund our operations, expand our business and make strategic acquisitions in the United States and other geographies, and as and when we decide to distribute, we may have to accrue additional taxes in accordance with local tax laws, rules and regulations in the relevant foreign jurisdictions.

(1) Not Meaningful

As of March 31, 2026 and December 31, 2025, we had $253.8 million and $328.4 million, respectively, in cash, cash equivalents and short-term investments, of which $206.9 million and $285.8 million, respectively, is located in foreign jurisdictions that upon distribution may be subject to withholding and other taxes.

As and when we decide to distribute, we may have to accrue additional taxes in accordance with local tax laws, rules and regulations in the relevant foreign jurisdictions.

During the three months ended March 31, 2026, some of our foreign subsidiaries repatriated $13.0 million to the United States.

Operating Activities:

Net cash provided by operating activities was $233.3 million during the nine months ended September 30, 2025, compared to $163.2 million during nine months ended September 30, 2024, reflecting higher cash earnings and lower working capital needs.

The major drivers contributing to the increase of $70.1 million year-over-year included the following:

• An increase in cash earnings including adjustments for non-cash and other items contributed higher cash flow of $62.2 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

These adjustments include fair value changes in investments, unrealized foreign currency exchange (gain)/loss, net, stock-based employee compensation, depreciation and amortization of long-lived assets and intangibles acquired in business combinations, among others.

• Changes in accounts receivable, including advance billings, driven by revenue growth, contributed lower cash flow of $18.6 million in the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Our days sales outstanding were 63 days as of September 30, 2025, compared to 64 days as of September 30, 2024.

• Payment of contingent consideration related to our December 2021 acquisition of Clairvoyant AI, Inc.

(“Clairvoyant”) contributed to a higher cash payout of $11.0 million during the nine months ended September 30, 2024, whereas no such payment occurred during the nine months ended September 30, 2025.

• Changes in other assets, accounts payables including other liabilities contributed to a lower cash payout of $15.5 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Net cash provided by operating activities was $1.7 million during the three months ended March 31, 2026, compared to $3.2 million during the three months ended March 31, 2025, reflecting lower cash earnings, partially offset by changes in working capital.

The major drivers contributing to the decrease of $1.5 million year-over-year included the following:

• Decrease in cash earnings, including adjustments for non-cash and other items contributed lower cash flow of $2.5 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

These adjustments include unrealized foreign currency exchange (gain)/loss, net, fair value mark-to-market on investments, stock-based employee compensation, depreciation and amortization of long-lived assets and intangibles acquired in business combinations, among others.

• Changes in accounts receivable, including advance billings, contributed lower cash flow of $5.0 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Our days sales outstanding were 63 days as of March 31, 2026, compared to 67 days as of March 31, 2025.

• Changes in other assets, accounts payables including other liabilities contributed to a lower cash payout of $6.0 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Investing Activities:

Net cash used for investing activities was $82.6 million for the nine months ended September 30, 2025, compared to $94.5 million for the nine months ended September 30, 2024.

The decrease of $11.9 million was primarily due to net cash used for business acquisition of $24.5 million during the nine months ended September 30, 2024 whereas no such payment occurred during the nine months ended September 30, 2025.

This was partially offset by higher net purchase of investments of $6.6 million and higher cash paid for capital expenditures, including investments in infrastructure, technology assets and digital capabilities of $5.4 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Net cash provided by investing activities were $44.0 million for the three months ended March 31, 2026, compared to net cash used of $22.3 million for the three months ended March 31, 2025.

The increase of $66.3 million was primarily due to higher proceeds from redemption of investments of $65.7 million during the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

Financing Activities:

Net cash used for financing activities was $147.9 million during the nine months ended September 30, 2025, compared to $52.2 million during the nine months ended September 30, 2024.

The increase of $95.7 million was primarily due to lower net proceeds from borrowings of $78.7 million during the nine months ended September 30, 2025, compared to nine months ended September 30, 2024 and higher purchases of treasury stock of

$23.0 million under our share repurchase programs during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

This was partially offset by payment of contingent consideration related to our December 2021 acquisition of Clairvoyant of $4.0 million during the nine months ended September 30, 2024 whereas no such payment occurred during the nine months ended September 30, 2025.

On July 29, 2025, we entered into a new supplemental confirmation to the prior Master Accelerated Share Repurchase Confirmation (together, the “2025 ASR Agreement”) with Citibank to repurchase shares of our common stock for an aggregate purchase price of $125 million, as part of our 2024 Repurchase Program of $500 million.

We funded the repurchase with available cash on hand and borrowing from our credit facility.

Net cash used for financing activities were $44.6 million during the three months ended March 31, 2026, compared to net cash provided of $3.4 million during the three months ended March 31, 2025.

The decrease of $48.0 million was due to higher purchases of treasury stock of $148.0 million under our share repurchase programs, partially offset by higher net proceeds from borrowings of $100.0 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

We expect to use cash from operating activities to maintain and expand our business by making investments, primarily related to building new digital capabilities, including AI, and purchase telecommunications equipment and computer hardware and software in connection with managing client operations.

We incurred $41.7 million of capital expenditures during the nine months ended September 30, 2025.

We expect to incur total capital expenditures of between $50.0 million to $55.0 million in fiscal 2025, primarily to meet our growth requirements, including additions to our facilities and infrastructure, as well as investments in technology applications, product development, and other digital technologies.

We incurred $12.9 million of capital expenditure during the three months ended March 31, 2026.

We expect to incur total capital expenditures of between $50.0 million to $55.0 million in fiscal 2026, primarily to meet our growth requirements,

including additions to our facilities and infrastructure, as well as investments in technology applications, product development and other digital technologies.

In connection with any tax assessment orders that have been issued, or may be issued against us or our subsidiaries, we may be required to deposit additional amounts with the relevant authorities with respect to such assessment orders.

See Note 25 - Commitments and Contingencies to our unaudited consolidated financial statements under Part I, Item 1, “Financial Statements” for further details.

See Note 25 - Commitments and Contingencies to our unaudited consolidated financial statements under Part I, Item 1, “Financial Statements” for further information.

We believe that our existing cash, cash equivalents and short-term investments and sources of liquidity will be sufficient to satisfy our cash requirements over the next 12 months.

Our future cash requirements will depend on many factors, including our rate of revenue growth, our investments in strategic initiatives like acquisition of complementary businesses, capital expenditures and continued stock repurchases, including accelerated stock repurchase under our board-authorized stock repurchase program, which may require the use of significant cash resources and/or additional financing.

Our future cash requirements will depend on many factors, including our rate of revenue growth, our investments in strategic initiatives like acquisition of complementary businesses, capital expenditures and continued stock repurchases, including accelerated stock repurchases, under our board-authorized stock repurchase program, which may require the use of significant cash resources and/or additional financing.

We anticipate that we will continue to rely upon cash from operating activities to finance most of our above-mentioned requirements, although if we have significant growth through acquisitions, we may need to obtain additional financing.

3 unchanged sentences

In the ordinary course of business, we provide standby letters of credit to third parties primarily for facility leases.

As of September 30, 2025 and December 31, 2024, we had outstanding letters of credit of $0.7 million and $0.8 million respectively, that were not recognized in our consolidated balance sheets.

As of March 31, 2026 and December 31, 2025, we had outstanding letters of credit of $1.1 million and $1.6 million respectively, that were not recognized in our consolidated balance sheets.

These are unlikely to have a current or future material effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

2 unchanged sentences

The following table summarizes our debt position:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(dollars in millions)

Revolving credit facility Term loan facility Total Revolving credit facility Term loan facility Total

1 unchanged sentence

Unamortized debt issuance costs — (0.1) (0.1) — (0.1) (0.1)

Total current portion of long-term borrowings — 4.9 4.9 — 4.9 4.9

Current portion of long-term borrowings — 4.9 4.9 — 4.9 4.9

Long-term borrowings 325.0 87.5 412.5 205.0 88.8 293.8

Unamortized debt issuance costs — — — — — —

Total long-term borrowings 260.0 89.9 349.9 190.0 93.6 283.6

Total borrowings $ 260.0 $ 94.8 $ 354.8 $ 190.0 $ 98.5 $ 288.5

As of September 30, 2025 and December 31, 2024, we were in compliance with the financial covenants under our credit agreement with certain lenders and Citibank N.A.

Long-term borrowings 325.0 87.5 412.5 205.0 88.8 293.8

Borrowings $ 325.0 $ 92.4 $ 417.4 $ 205.0 $ 93.7 $ 298.7

As of March 31, 2026 and December 31, 2025, we were in compliance with the financial covenants under our credit agreement with certain lenders and Citibank N.A.

as administrative agent.

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis