EXL Stock Down 41% Year Over Year as One Investor Reveals $68 Million Exit

On February 17, 2026, Atairos Group, Inc. reported in a U.S. Securities and Exchange Commission (SEC) filing that it sold out of ExlService Holdings (NASDAQ:EXLS) during the fourth quarter, eliminating a stake previously worth $68 million.

What happened

According to a recent SEC filing, Atairos Group, Inc. sold all 1,551,970 shares of ExlService Holdings (NASDAQ:EXLS) during the fourth quarter. The quarter-end value of the ExlService Holdings stake declined by $68.33 million as a result.

What else to know

• Top holdings after the filing:
  • NYSE:TNET: $1.07 billion (64.8% of AUM)
  • NYSE:LUCK: $537.22 million (32.6% of AUM)
  • NYSE:CLVT: $40.95 million (2.5% of AUM)
  • NYSE:XPOF: $1.86 million (0.1% of AUM)
• As of February 17, 2026, shares of ExlService Holdings were priced at $30.21, down 40.8% over the past year and well underperforming the S&P 500, which is up roughly 20% in the same period.

Company overview

Company snapshot

• ExlService Holdings offers data analytics, digital operations, and solutions across insurance, healthcare, and analytics segments, with products including LifePRO, LISS, Subrosource, and CareRadius.
• The company generates revenue primarily through technology-enabled outsourcing, analytics-driven services, and SaaS platforms, leveraging automation, artificial intelligence, and machine learning to deliver operational efficiencies for clients.
• It serves insurance companies, healthcare payers and providers, pharmacy benefit managers, and life sciences organizations, with a global client base focused on regulated and data-intensive industries.

ExlService Holdings is a leading provider of digital operations and analytics solutions. The company’s strategy centers on integrating advanced automation and data science into business processes, enabling clients to achieve greater efficiency and insight. Its competitive edge lies in its domain expertise across insurance and healthcare, as well as its proprietary technology platforms and analytics capabilities.

What this transaction means for investors

Portfolio concentration can cut both ways. When a fund runs a book dominated by just a handful of names, as is the case here, every smaller holding has to earn its spot. That context makes the exit from ExlService Holdings more telling than the dollar amount alone might suggest.

Exl operates in a part of the tech ecosystem that has quietly become essential to large enterprises. The company provides analytics, automation, and digital operations services for industries like insurance and healthcare, sectors that are swimming in data but often slow to modernize their back-office systems. That niche helped push revenue to roughly $2.1 billion last year as companies leaned more heavily on AI-driven analytics and outsourcing.

Still, the market hasn’t rewarded the story lately. Shares have fallen sharply over the past year as investors rotated away from smaller technology services firms and toward higher-growth AI infrastructure plays—a dynamic that’s been particularly brutal for some software firms. It’s also important to note that EXLS shares have tumbled 26% since the end of last quarter, meaning much of the decline came after Atairos’ exit.

Against that backdrop, the portfolio itself tells an interesting story. The remaining holdings are overwhelmingly concentrated in just two companies that together account for nearly all assets. That leaves very little room for smaller bets, of which there were only two. All of this to say that the move here doesn’t necessarily suggest EXL is broken, but it does highlight how disciplined and decisive highly concentrated investors can be.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ExlService. The Motley Fool has a disclosure policy.