Total Revenue, net

+15% (Q1 2025: $501.0M vs. Q1 2024: $436.5M)

Revenue grew significantly due to expansion of business from both new and existing clients across multiple segments, including contributions from acquisitions like ITI Data. This builds on the previous period’s strong revenue performance and reflects continued diversification of revenue streams. " "

Operating Income

+27% (Q1 2025: $78.4M vs. Q1 2024: $61.5M)

Operating income improved markedly as the company leveraged higher revenues and operating efficiencies established in prior periods. Increased segment contributions coupled with effective cost management drove margins higher, building on earlier investments in digital solutions and client expansion seen in FY 2024. " "

Net Income

+36% (Q1 2025: $66.6M vs. Q1 2024: $48.8M)

Net income jumped primarily supported by higher income from operations and improved non-operating items, including better yields on investments and lower effective tax rates. The strong operational performance from previous periods—augmented by strategic initiatives—fueled this robust growth. " "

Basic Earnings per Share (EPS)

+37% (Q1 2025: $0.41 vs. Q1 2024: $0.30)

Basic EPS increased substantially as a result of the higher net income and potential reduction in weighted average common shares outstanding. This improvement continues the trend from FY 2024, where enhanced profitability through revenue growth, margin expansion, and share repurchase programs positively impacted EPS. " "

Revenue Range

FY 2025

$2.025 billion to $2.06 billion "

$2.035 billion to $2.065 billion " "

raised

Revenue YoY Growth (reported)

FY 2025

10% to 12% "

11% to 12% " "

raised

Revenue YoY Growth (constant currency)

FY 2025

11% to 13% "

11% to 13% " "

no change

Foreign Exchange Impact (headwind)

FY 2025

$10 million headwind "

$5 million headwind " "

lowered

Adjusted Operating Profit Margin

FY 2025

no prior guidance

Improvement of 10 to 20 basis points "

no prior guidance

Adjusted EPS

FY 2025

$1.83 to $1.89 "

$1.83 to $1.89 " "

no change

Foreign Exchange Gain

FY 2025

Approximately $1 million "

Approximately $2 million to $3 million " "

raised

Net Interest Expense

FY 2025

Approximately $1 million "

Approximately $1 million " "

no change

Effective Tax Rate

FY 2025

22% to 23% "

22% to 23% " "

no change

Capital Expenditures

FY 2025

$50 million to $55 million "

$50 million to $55 million " "

no change

Data and AI Growth and Modernization

Consistent emphasis on strong revenue contribution from data and AI, development of multiple proprietary AI solutions, and significant investments in data modernization across Q2, Q3, and Q4 2024 " " " " "

Q1 2025 highlights 16% YoY growth, 53% of revenue driven by AI-led initiatives, launch of the Agentic AI platform, and deep integration of AI into client workflows " " "

Consistent commitment with an increased emphasis on embedding AI into workflows and driving outcome-based models, signaling a more mature AI strategy.

Digital Operations Expansion and Resilience

Robust double-digit growth and resilience in digital operations were reported in Q2, Q3, and Q4 2024, supported by integrated deals, international expansion, and new operating models " " " " "

Q1 2025 underscores a strategic shift to AI-powered digital operations, a strong sales pipeline, and continued resilience with cost savings and greater efficiency " "

Steady momentum with a shift towards AI integration that enhances operational efficiency while maintaining resilience.

Client Acquisition, Deal Pipeline, and Operating Model Transformation

Previous quarters (Q2, Q3, Q4 2024) reported robust client wins (up to 39 new clients in Q2), a healthy, large deal pipeline, and the introduction of a new operating model to deepen industry expertise and cross‐selling " " " " "

In Q1 2025, while the new client count dropped to 10, the focus is on deal quality, strong pipeline growth, and further embedding AI within the operating model to drive long-term efficiency " " "

A qualitative shift from quantity to quality in client acquisition with sustained pipeline strength and a continued emphasis on operating model transformation.

Revenue Visibility and Forecast Predictability

Throughout Q2–Q4 2024, revenue guidance was robust with high confidence, clear pipeline development, and positive forecasts, although discussions were less specific on visibility metrics " " "

Q1 2025 reports 87% of revenue committed and 95% overall visibility, reinforcing predictability and a “pretty good spot” for the remainder of the year "

Enhanced clarity and stability in revenue forecasts, building on a strong foundation from earlier periods.

Macroeconomic Headwinds and Pricing Competition

Earlier quarters (especially Q2 and Q4 2024) touched on macroeconomic uncertainties and evolving client spending without a strong focus on pricing competition " " "

Q1 2025 emphasizes its diversified business model to withstand macroeconomic slowdowns, while pricing competition is not highlighted, underscoring reliance on value and AI-driven efficiencies " "

Increased focus on navigating macroeconomic headwinds with robust diversification, while pricing competition remains a minor concern.

Margin Pressure and Profitability Challenges

Q2 2024 noted margin pressure from elevated SG&A and restructuring costs; Q3 2024 mentioned quarterly volatility and early-stage margin drags from new AI tools; Q4 2024 reported improving gross and operating margins " " " "

Q1 2025 shows strong financial performance with a 20.1% adjusted operating margin, decreased SG&A expenses, and overall improved profitability metrics "

A clear trajectory of margin recovery and improved profitability as efficiency gains from AI and digital operations begin to materialize.

Operating Model Integration and Execution Risks

Only Q4 2024 discussed the new operating model integration with minimal leadership impact and careful realignment to avoid friction " "

Q1 2025 does not mention integration or execution risks, suggesting that concerns have been largely resolved or are not top of mind

The smooth integration noted in Q4 appears to have stabilized, with no new execution risks raised in Q1 2025.

Risk of AI-driven Legacy Revenue Cannibalization

Not previously discussed in detail across Q2–Q4 2024

Q1 2025 features an explicit discussion on the gradual—and proactively managed—impact of AI cannibalizing legacy revenue, with a focus on long-term value creation and balanced business mix " "

A new and proactive discussion emerged in Q1 2025, framing potential cannibalization as a strategic growth accelerant rather than a threat.

Segment-specific Slowdown in the Insurance Vertical

Q2 and Q3 2024 reported strong growth in the Insurance vertical, and Q4 2024 emphasized consistent YoY growth (13%-15%) across verticals despite minor quarterly variations " " " "

Q1 2025 reports a slight slowdown in the insurance growth rate (around 9.5% to 10% in Q1) but views it as a timing issue with expectations of rebound in subsequent quarters "

A temporary, quarter-specific slowdown in insurance is noted in Q1 2025, though long-term growth remains robust and is expected to recover.

Delayed EPS Benefit and Share Repurchase Impact

Q2 2024 detailed significant share repurchases and a delayed EPS benefit, while Q3 2024 discussed positive repurchase activity with favorable capital allocation " " "

Q1 2025 does not mention these topics, indicating a deprioritization or transition in focus away from capital allocation details

Less emphasis on share repurchase and delayed EPS benefit in Q1 2025, suggesting these issues are less of a focus compared to operational and AI-driven growth priorities.