Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 9

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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, primarily due to higher gross margin, partially offset by higher SG&A expenses and other operating expense (income), net in the third quarter of 2025 compared to the third quarter of 2024.

Foreign exchange gains, net. We recorded a net foreign exchange gain of $3.7 million in the third quarter of 2025 compared to a gain of $1.1 million in the third quarter of 2024. The gains in the third quarters of 2025 and 2024 resulted primarily from the depreciation of the Indian rupee against the U.S. dollar. 

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Interest income (expense), net. Our interest expense (net of interest income) was $12.8 million in the third quarter of 2025, up $0.4 million from $12.4 million in the third quarter of 2024. Our interest income decreased from $10.3 million in the third quarter of 2024 to $5.1 million in the third quarter of 2025, due to lower interest rates and lower cash balances. This was partially offset by a decrease in interest expense largely due to (i) the absence of interest expense on our senior notes issued in 2019, which were repaid in December 2024, and (ii) lower interest expense on our term loan due to a lower SOFR and reduced volume in the third quarter of 2025 compared to the third quarter of 2024. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.6% in the third quarter of 2024 to 4.8% in the third quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.

Other income (expense), net. Our other income (net of expense) was $6.8 million in the third quarter of 2025, compared to $5.1 million in the third quarter of 2024, primarily due to a greater gain on the fair value of deferred compensation plan assets in the third quarter of 2025 than in the third quarter of 2024.

Income tax expense. Our income tax expense was $43.5 million in the third quarter of 2025, up from $42.7 million in the third quarter of 2024, due to higher pre-tax income, representing an effective tax rate (“ETR”) of 23.0% in the third quarter of 2025