Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 105

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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 2024.

Gross margin. Our gross margin increased from 35.2% in the first half of 2024 to 35.6% in the first half of 2025. The increase in gross margin was primarily due to improved operating leverage in the first half of 2025 compared to the first half of 2024.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues were flat at 20.6% in the first half of 2024 compared to the first half of 2025. SG&A expenses were $507.5 million in the first half of 2025, up $32.8 million, or 6.9%, from $474.7 million in the first half of 2024. This increase was primarily driven by (i) higher stock-based compensation expense, (ii) a higher allowance for credit losses, (iii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, (iv) increased spending on professional services, and (v) wage inflation in the first half of 2025 compared to the first half of 2024. 

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $8.6 million in the first half of 2025, down $4.8 million, or 36.0%, from $13.5 million in the first half of 2024. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.

Other operating (income) expense, net. Other operating income (net of expense) was $0.2 million in the first half of 2025, compared to $5.5 million in the first half of 2024. The decline in other operating income (net of expense) was primarily due to a gain upon the redemption of a loan note associated with the sale of a business previously classified as held for sale and the waiver by a vendor of a liability, both in the first half of 2024, with no corresponding income recorded in the first half of 2025.

Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased from 14.3% in the first half of 2024 to 14.7% in the first half of 2025. Income from operations increased by $32.9 million from $330.2 million in