Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 14

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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0 %High Tech and Manufacturing1,307.8 1,473.1 12.6 %Net revenues$3,518.4 $3,760.6 6.9 %

Net revenues from our Financial Services and Consumer and Healthcare segments increased by 5.4% and 2.0%, respectively, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, largely due to an increase in revenue from Advanced Technology Solutions and technology services. Net revenues from our High Tech and Manufacturing segment increased by 12.6% in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by ramp-ups of services from recently signed deals and an increase in demand for our Advanced Technology Solutions and technology services.

Cost of revenue. Cost of revenue was $2,411.9 million in the nine months ended September 30, 2025, up $137.8 million, or 6.1%, from $2,274.1 million in the nine months ended September 30, 2024. This increase was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) higher stock-based compensation expense, (iv) increased spending on professional services, and (v) an increase in costs for resold partnership technologies in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Gross margin. Our gross margin increased from 35.4% in the nine months ended September 30, 2024 to 35.9% in the nine months ended September 30, 2025. The increase in gross margin was primarily due to improved operating leverage in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.4% in the nine months ended September 30, 2024 to 20.5% in the nine months ended September 30, 2025. SG&A expenses were $769.6 million in the nine months ended September 30, 2025, up $51.6 million, or 7.2%, from $718.0 million in the nine months