What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-28 compared with 2026-04-28 · 179 added, 72 removed, 186 unchanged (57% of the section changed)

24 unchanged sentences

• 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;

• our ability to successfully consummate or integrate announced or future 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;

22 unchanged sentences

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.

Recent Developments

On June 22, 2026, we, through our wholly owned subsidiary Clairvoyant AI, Inc.

entered into a securities purchase agreement (the “Purchase Agreement”) to acquire 100% of the equity securities of I Merit Inc., a Delaware Corporation (“iMerit”), in exchange for upfront cash consideration of $170 million, subject to certain post-closing adjustments, and up to an additional $140 million in cash incentives and earnouts over two years contingent on meeting specified milestones, as set forth in the Purchase Agreement.

iMerit is a recognized leader in AI model training, evaluation and reinforcement learning.

It is focused on helping its clients train large language and multimodal models to improve accuracy, precision, and effectiveness.

The acquisition strengthens our ability to help enterprises achieve measurable outcomes from AI, builds partnerships with leading foundation model builders and expands its reach into high-growth AI tech sectors.

The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, including expiration or termination of the waiting period for applicable antitrust regulations.

For the three months ended June 30, 2026, we generated revenues of $594.8 million compared to revenues of $514.5 million for the three months ended June 30, 2025, an increase of $80.3 million, or 15.6%.

For the six months ended June 30, 2026, we generated revenues of $1,165.1 million compared to revenues of $1,015.5 million for the six months ended June 30, 2025, an increase of $149.6 million, or 14.7%.

We serve cli ents mainly in North America, and the United Kingdom & Europe , with these two regions generating 82.3% and 15.0%, respectively, of our total revenues for the three months ended June 30, 2026, and 82.2% and 15.1%, respectively, of our total revenues for the three months ended June 30, 2025.

For the six months ended June 30, 2026, these two regions generated 82.6% and 14.8%, respectively, of our total revenues and 82.5% and 14.8%, respectively, of our total revenues for the six months ended June 30, 2025.

For the three months ended June 30, 2026 and 2025, our total revenues from our top ten clients accounted for 34.1% and 33.5% of our total revenues, respectively.

For the six months ended June 30, 2026 and 2025, our total revenues from our top ten clients accounted for 34.3% and 33.6% 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.

26 unchanged sentences

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.

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.

10 unchanged sentences

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

We believe this trend will continue and we use such alternative pricing models with some of our current clients and are seeking to move certain other clients from a full-time-equivalent pricing model to a transaction-based or other alternative pricing model.

We believe this trend will continue and we use such alternative

pricing models with some of our current clients and are seeking to move certain other clients from a full-time-equivalent pricing model to a transaction-based or other alternative pricing model.

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

Critical Accounting Policies and Estimates

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.

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 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:

The following table summarizes our results of operations for the three months ended June 30, 2026 and 2025:

(dollars in millions)

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

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

Three months ended June 30, 2026 Percentage of Revenues, net Three months ended June 30, 2025 Percentage of Revenues, net Dollar change Percentage change

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

10 unchanged sentences

Income from operations 87.4 14.7 % 81.2 15.8 % 6.2 7.6 %

Foreign exchange gain/(loss), net 1.1 0.2 % 1.2 0.2 % (0.1) (4.8) %

Foreign exchange gain, net 1.6 0.3 % 2.2 0.4 % (0.6) (27.2) %

Interest expense (5.1) (0.9) % (4.3) (0.8) % (0.8) 18.4 %

3 unchanged sentences

Income before earnings from equity affiliates 64.6 10.9 % 66.2 12.9 % (1.6) (2.5) %

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

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

Net income $ 64.6 10.8 % $ 66.1 12.8 % $ (1.5) (2.3) %

1 unchanged sentence

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

Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025

Revenues, net:

The following table summarizes our revenues by reportable segments:

Three months ended March 31, Dollar change Percentage

change Percentage of Total Revenues for the three months ended

Three months ended June 30, Dollar change Percentage

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

2026 2025 2026 2025

5 unchanged sentences

Revenues, net $ 594.8 $ 514.5 $ 80.3 15.6 % 100.0 % 100.0 %

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.

Revenues for the three months ended June 30, 2026 were up by $80.3 million, or 15.6%, compared to the three months ended June 30, 2025, driven by the expansion of business from our existing clients across all reportable segments by 13.3% and revenue from new clients wins by 2.6%, partially offset by a foreign exchange loss, net of hedging by 0.3% during the three months ended June 30, 2026.

Revenue growth in Insurance by 14.9% was driven by the expansion of business from our existing clients by 13.7% and new clients by 1.2% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Revenue growth in Healthcare and Life Sciences by 22.0% was driven by the expansion of business from our existing clients by 21.0% and new clients by 1.0% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Revenue growth in Banking, Capital Markets and Diversified Industries by 10.5% was driven by the expansion of business from our existing clients by 5.2% and new clients by 5.3% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Revenue growth in International Growth Markets of 14.7% was driven by the expansion of business from our existing clients by 12.1%, new clients by 4.2%, partially offset by a foreign exchange loss, net of hedging by 1.6% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Cost of Revenues and Gross Margin :

1 unchanged sentence

Cost of Revenues Gross Margin

Three months ended March 31, Dollar change Percentage

change Three months ended March 31, Percentage

Three months ended June 30, Dollar change Percentage

change Three months ended June 30, Percentage

2026 2025 2026 2025

5 unchanged sentences

Total $ 368.8 $ 320.3 $ 48.5 15.2 % 38.0 % 37.7 % 0.3 %

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.

Cost of revenues for the three months ended June 30, 2026 increased by $48.5 million, or 15.2% compared to the three months ended June 30, 2025.

The increase in cost of revenues was due to increases in employee-related costs of $44.9 million on account of higher headcount and wage inflation, and higher technology costs of $8.4 million, facilities and other operating costs

of $4.4 million, partially offset by a foreign exchange gain, net of hedging of $9.2 million.

Our gross margin for the three months ended June 30, 2026 was 38.0%, compared to 37.7% for the three months ended June 30, 2025, an increase of 30 basis points (“bps”), primarily driven by higher revenues and operational efficiencies, partially offset by lower volumes from certain existing clients.

The increase in cost of revenues in Insurance by $17.1 million for the three months ended June 30, 2026 was due to increases in employee-related costs of $15.6 million on account of higher headcount and wage inflation, higher technology costs of $2.5 million, and other operating costs of $1.3 million, partially offset by foreign exchange gain, net of hedging of $2.3 million.

Gross margin in Insurance decreased by 20 bps, primarily due to lower volumes from certain existing clients during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The increase in cost of revenues in Healthcare and Life Sciences by $10.8 million for the three months ended June 30, 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 $1.9 million, and higher facilities and other operating costs of $1.7 million, partially offset by foreign exchange gain, net of hedging of $2.1 million.

Gross margin in Healthcare and Life Sciences increased by 340 bps, primarily due to higher volumes from certain existing clients during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The increase in cost of revenues in Banking, Capital Markets and Diversified Industries by $11.9 million for the three months ended June 30, 2026 was due to increases in employee-related costs of $11.4 million on account of higher headcount and wage inflation, higher technology costs of $1.8 million, and higher facilities and other operating costs of $1.0 million, partially offset by foreign exchange gain, net of hedging of $2.3 million.

Gross margin in Banking, Capital Markets and Diversified Industries decreased by 300 bps, primarily due to lower volumes from certain existing clients during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The increase in cost of revenues in International Growth Markets by $8.7 million for the three months ended June 30, 2026 was due to increases in employee-related costs of $8.6 million on account of higher headcount and wage inflation, and higher technology costs of $2.2 million and other operating costs $0.4 million, partially offset by a foreign exchange gain, net of hedging of $2.5 million.

Gross margin in International Growth Markets remained flat during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

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

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.

SG&A expenses as a percentage of net revenues increased from 19.2% during the three months ended June 30, 2025 to 20.9% during the three months ended June 30, 2026.

The increase in SG&A expenses by $25.1 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025 was primarily due to increases in employee-related costs of $19.7 million on account of higher headcount and wage inflation, iMerit acquisition related expenses of $1.9 million, increased investments in digital and generative AI capabilities of $1.8 million, and higher sales and marketing and other operating costs of $1.7 million.

Depreciation and Amortization.

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.

Depreciation and amortization expenses as a percentage of net revenues decreased by 0.2% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

The increase in depreciation and amortization expense by 3.9% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025 was primarily due to investments in infrastructure, technology assets and digital capabilities.

Income from Operations.

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.

The increase in income from operations by 7.6% during the three months ended June 30, 2026, compared to the three months ended June 30, 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 $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.

We recorded a foreign exchange gain, net of $1.6 million for the three months ended June 30, 2026, compared to a foreign exchange gain, net of $2.2 million for the three months ended June 30, 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 three months ended March 31, 2026, compared to the three months ended March 31, 2025.

pound sterling and the South African rand during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Interest expens e.

The increase in interest expense by $0.8 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025 was primarily due to a higher average borrowings.

Other Income, net.

Three months ended June 30, Change Percentage

(dollars in millions)

Interest and dividend income $ 2.4 $ 2.7 $ (0.3) (9.1) %

Gain on sale and fair value mark-to-market on investments 1.6 2.3 (0.7) (31.4) %

Fair value changes of contingent consideration (3.0) — (3.0) (100.0) %

Others, net (0.9) 0.7 (1.6) (217.4) %

Other income, net $ 0.1 $ 5.7 $ (5.6) (97.7) %

Other income, net decreased by $5.6 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025 primarily due to changes in the fair value consideration related to our August 2024 acquisition of Incandescent Technologies, Inc.

(“ITI Data”), lower yield on our investments and higher other expenses, net.

Income Tax Expense.

The effective tax rate for the three months ended June 30, 2026 was 23.1%, an increase from 21.9% for the three months ended June 30, 2025.

We recorded income tax expense of $19.4 million and $18.6 million for the three months ended June 30, 2026 and 2025, respectively.

The increase in income tax expense was primarily as a result of an increase in non-deductible expenses and lower excess tax benefits related to stock-based compensation, as compared to the three months ended June 30, 2025.

The decrease in net income by 2.3% during the three months ended June 30, 2026, compared to the three months ended June 30, 2025 was attributable to the aforementioned factors.

Results of Operations

The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:

(dollars in millions)

Six months ended June 30, 2026 Percentage of Revenues, net Six months ended June 30, 2025 Percentage of Revenues, net Dollar Change Percentage Change

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

Revenues, net $ 1,165.1 100.0 % $ 1,015.5 100.0 % $ 149.6 14.7 %

Cost of revenues (1)

717.1 61.5 % 628.0 61.8 % 89.1 14.2 %

Gross profit (1)

448.0 38.5 % 387.5 38.2 % 60.5 15.6 %

Operating expenses:

General and administrative expenses 143.5 12.3 % 119.0 11.7 % 24.5 20.6 %

Selling and marketing expenses 96.8 8.3 % 81.4 8.0 % 15.4 19.0 %

Depreciation and amortization expense 28.6 2.5 % 27.6 2.7 % 1.0 3.6 %

Total operating expenses 268.9 23.1 % 228.0 22.4 % 40.9 18.0 %

Income from operations 179.1 15.4 % 159.5 15.7 % 19.6 12.3 %

Foreign exchange gain, net 2.7 0.2 % 3.4 0.3 % (0.7) (19.4) %

Interest expense (9.0) (0.8) % (8.4) (0.8) % (0.6) 7.0 %

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 2.5 0.2 % 10.4 1.0 % (7.9) (75.7) %

Three months ended March 31, Dollar change Percentage

Income before income tax expense and earnings from equity affiliates 175.3 15.1 % 164.9 16.2 % 10.4 6.3 %

Income tax expense 43.7 3.8 % 32.0 3.2 % 11.7 36.5 %

Income before earnings from equity affiliates 131.6 11.3 % 132.9 13.1 % (1.3) (0.9) %

Loss from equity-method investment — — % (0.3) — % 0.3 (87.6) %

Net income $ 131.6 11.3 % $ 132.6 13.1 % $ (1.0) (0.8) %

(1) Exclusive of depreciation and amortization expense.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

Revenues, net:

The following table summarizes our revenues by reportable segments:

Six months ended June 30, Dollar change Percentage

change Percentage of Total Revenues for the six months ended June 30,

2026 2025 2026 2025

(dollars in millions)

Insurance $ 391.7 $ 344.2 $ 47.5 13.8 % 33.6 % 33.9 %

Healthcare and Life Sciences 309.9 255.1 54.8 21.5 % 26.6 % 25.1 %

Banking, Capital Markets and Diversified Industries 261.2 238.8 22.4 9.4 % 22.4 % 23.5 %

International Growth Markets 202.3 177.4 24.9 14.0 % 17.4 % 17.5 %

Revenues, net $ 1,165.1 $ 1,015.5 $ 149.6 14.7 % 100.0 % 100.0 %

Revenues for the six months ended June 30, 2026 were up by $149.6 million, or 14.7%, compared to the six months ended June 30, 2025, driven by the expansion of business from our existing clients across all reportable segments by 12.4% and revenue from new clients wins by 2.3% during the six months ended June 30, 2026.

Revenue growth in Insurance by 13.8% was driven by the expansion of business from our existing clients by 12.6% and new clients by 1.2% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Revenue growth in Healthcare and Life Sciences by 21.5% was driven by the expansion of business from our existing clients by 20.8% and new clients by 0.7% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Revenue growth in Banking, Capital Markets and Diversified Industries by 9.4% was driven by the expansion of business from our existing clients by 4.7% and new clients by 4.7% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Revenue growth in International Growth Markets of 14.0% was driven by the expansion of business from our existing clients by 10.1%, new clients by 3.6% and a foreign exchange gain, net of hedging by 0.3% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

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

Six months ended June 30, Dollar change Percentage change Six months ended June 30, Percentage change

2026 2025 2026 2025

(dollars in millions)

Insurance $ 250.2 $ 221.5 $ 28.7 13.0 % 36.1 % 35.7 % 0.4 %

Healthcare and Life Sciences 167.0 143.6 23.4 16.3 % 46.1 % 43.7 % 2.4 %

Banking, Capital Markets and Diversified Industries 167.7 149.1 18.6 12.4 % 35.8 % 37.6 % (1.8) %

International Growth Markets 132.2 113.8 18.4 16.2 % 34.6 % 35.9 % (1.3) %

Total $ 717.1 $ 628.0 $ 89.1 14.2 % 38.5 % 38.2 % 0.3 %

Cost of revenues for the six months ended June 30, 2026 increased by $89.1 million, or 14.2%, compared to the six months ended June 30, 2025.

The increase in cost of revenues was due to increases in employee-related costs of $80.4 million on account of higher headcount and wage inflation, and higher technology costs of $14.5 million, and higher facilities and other operating

costs of $7.2 million, partially offset by a foreign exchange gain, net of hedging of $13.0 million.

Our gross margin for the six months ended June 30, 2026 was 38.5%, compared to 38.2% for the six months ended June 30, 2025, an increase of 30 bps, primarily driven by higher revenues and operational efficiencies, partially offset by lower volumes from certain existing clients.

The increase in cost of revenues in Insurance by $28.7 million for the six months ended June 30, 2026 was due to increases in employee-related costs of $26.8 million on account of higher headcount and wage inflation, higher technology costs of $4.3 million, and higher other operating costs of $1.0 million, partially offset by foreign exchange gain, net of hedging of $3.4 million.

Gross margin in Insurance increased by 40 bps, primarily due to higher revenues and operational efficiencies during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The increase in cost of revenues in Healthcare and Life Sciences by $23.4 million for the six months ended June 30, 2026 was due to increases in employee-related costs of $18.6 million on account of higher headcount and wage inflation, higher technology costs of $3.5 million, and higher facilities and other operating costs of $4.5 million, partially offset by foreign exchange gain, net of hedging of $3.2 million.

Gross margin in Healthcare and Life Sciences increased by 240 bps, primarily due to higher volumes from certain existing clients during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The increase in cost of revenues in Banking, Capital Markets and Diversified Industries by $18.6 million for the six months ended June 30, 2026 was due to increases in employee-related costs of $18.3 million on account of higher headcount and wage inflation, higher technology costs of $2.8 million, and higher facilities and other operating costs of $0.8 million, partially offset by a foreign exchange gain, net of hedging of $3.3 million.

Gross margin in Banking, Capital Markets and Diversified Industries decreased by 180 bps, primarily due to lower volumes from certain existing clients during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The increase in cost of revenues in International Growth Markets by $18.4 million for the six months ended June 30, 2026 was due to increases in employee-related costs of $16.7 million on account of higher headcount and wage inflation, higher technology costs of $3.9 million, and higher facilities and other operating costs of $0.9 million, partially offset by a foreign exchange gain, net of hedging of $3.1 million.

Gross margin in International Growth Markets decreased by 130 bps, primarily due to lower volumes from certain existing clients during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

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

SG&A expenses as a percentage of net revenues increased from 19.7% during the six months ended June 30, 2025 to 20.6% during the six months ended June 30, 2026.

The increase in SG&A expenses by $39.9 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily due to increases in employee-related costs of $31.7 million on account of higher headcount and wage inflation, increased investments in digital and generative AI capabilities of $3.7 million, higher sales and marketing costs of $2.0 million, iMerit acquisition related expenses of $1.9 million, and other operating costs of $0.6 million.

Depreciation and Amortization.

Depreciation and amortization expenses as a percentage of net revenues decreased by 0.2% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

The increase in depreciation and amortization expense by 3.6% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily due to investments in infrastructure, technology assets and digital capabilities.

Income from Operations.

The increase in income from operations by 12.3% during the six months ended June 30, 2026, compared to the six months ended June 30, 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 $2.7 million for the six months ended June 30, 2026, compared to a foreign exchange gain, net of $3.4 million for the six months ended June 30, 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 six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Interest expense.

The increase in interest expense by $0.6 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily due to higher average borrowings.

Other Income, net.

Six months ended June 30, Change Percentage change

(dollars in millions)

Interest and dividend income $ 4.0 $ 5.3 $ (1.3) (24.8) %

Gain on sale and fair value mark-to-market on investments 3.0 4.2 (1.2) (27.7) %

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

Fair value changes of contingent consideration (3.0) — (3.0) (100.0) %

Others, net (1.5) 0.9 (2.4) (275.5) %

Other income, net $ 2.5 $ 10.4 $ (7.9) (75.7) %

(1) Not Meaningful

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.

Other income, net decreased by $7.9 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025 primarily due to changes in the fair value consideration related to our August 2024 acquisition of ITI Data, lower yield on our investments and higher other expenses, net.

Income Tax Expense.

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.

The effective tax rate for the six months ended June 30, 2026 was 24.9%, an increase from 19.5% for the six months ended June 30, 2025.

We recorded income tax expense of $43.7 million and $32.0 million for the six months ended June 30, 2026 and 2025, respectively.

The increase in income tax expense was primarily as a result of higher profit and lower excess tax benefits related to stock-based compensation, partially offset by a decrease in non-deductible compensation expenses, as compared to the six months ended June 30, 2025.

The decrease in net income by 0.8% during the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was attributable to the aforementioned factors.

Liquidity and Capital Resources

Three months ended March 31, Dollar change Percentage change

Six months ended June 30, Dollar Change Percentage Change

(dollars in millions)

1 unchanged sentence

Net cash provided by operating activities 89.6 112.6 (23.0) (20.4) %

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)

Net cash used for investing activities (6.2) (36.3) 30.1 (83.0) %

Net cash used for financing activities (100.8) (84.6) (16.2) 19.2 %

Effect of exchange rate changes (1.8) 7.4 (9.2) (125.3) %

Closing cash, cash equivalents and restricted cash $ 146.8 $ 170.5 $ (23.7) (13.9) %

(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 of June 30, 2026 and December 31, 2025, we had $283.8 million and $328.4 million, respectively, in cash, cash equivalents and short-term investments, of which $249.3 million and $285.8 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.

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.

During the six months ended June 30, 2026, some of our foreign subsidiaries repatriated $13.0 million to the United States.

Operating Activities:

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.

Net cash provided by operating activities was $89.6 million during the six months ended June 30, 2026, compared to $112.6 million during the six months ended June 30, 2025, reflecting higher working capital needs, partially offset by higher cash earnings.

The major drivers contributing to the decrease of $23.0 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.

• Changes in accounts receivable, including advance billings, contributed lower cash flow of $50.1 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Our days sales outstanding were 69 days as of June 30, 2026, compared to 64 days as of June 30, 2025.

• Increase in cash earnings, including adjustments for non-cash and other items contributed higher cash flow of $16.0 million during the six months ended June 30, 2026, compared to the six months ended June 30, 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.

• Changes in other assets, accounts payables including other liabilities contributed to a lower cash payout of $11.1 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Investing Activities:

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.

Net cash used for investing activities were $6.2 million during the six months ended June 30, 2026, compared to net cash used of $36.3 million for the six months ended June 30, 2025.

The decrease of $30.1 million was primarily due to higher proceeds from redemption of investments of $30.2 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025.

Financing Activities:

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.

Net cash used for financing activities were $100.8 million during the six months ended June 30, 2026, compared to net cash used of $84.6 million during the six months ended June 30, 2025.

The increase of $16.2 million was primarily due to higher purchases of treasury stock of $126.9 million under our share repurchase programs, partially offset by higher net proceeds from borrowings of $111.0 million during the six months ended June 30, 2026, compared to the six months ended June 30, 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 $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.

We incurred $27.4 million of capital expenditure during the six months ended June 30, 2026.

We expect to incur total capital expenditures of between $58.0 million to $62.0 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 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.

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 twelve 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 repurchases under our board-authorized stock repurchase program, which may require the use of significant cash resources and/or additional financing.

4 unchanged sentences

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

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.

As of June 30, 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:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(dollars in millions)

7 unchanged sentences

Borrowings $ 290.0 $ 91.2 $ 381.2 $ 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.

Our 2024 Credit Agreement will mature on April 18, 2027, and all outstanding amounts will be due and payable.

We are in the process of refinancing our 2024 Credit Agreement, which is expected to be completed in the third quarter of 2026.

that we have access to adequate resources, which include cash and cash equivalents, short-term investments, cash provided by operating activities and unused amounts in our revolving credit facility to meet our needs for at least the next twelve months.

As of June 30, 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