Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 189

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 189
---
5, up from $40.4 million in the second quarter of 2024, representing an effective tax rate (“ETR”) of 24.9% in the second quarter of 2025, unchanged from the second quarter of 2024. 

Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.6% in the second quarter of 2025, up from 10.4% in the second quarter of 2024. 

Adjusted income from operations. Adjusted income from operations (“AOI”) increased by $18.9 million, from $198.4 million in the second quarter of 2024 to $217.3 million in the second quarter of 2025. Our AOI margin increased from 16.9% in the second quarter of 2024 to 17.3% in the second quarter of 2025, largely driven by higher gross margin and an increase in other income, partially offset by higher SG&A expense in the second quarter of 2025 compared to the second quarter of 2024.   

AOI and AOI margin are non-GAAP measures and are not based on any comprehensive set of accounting rules or principles. They should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. We believe that presenting AOI alongside our reported results offers useful supplemental information to our investors and management regarding financial and business trends relating to our financial condition and results of operations. A limitation of using AOI versus net income calculated in accordance with GAAP is that AOI excludes certain recurring costs and certain other charges, namely stock-based compensation and amortization of acquired intangibles. We compensate for this limitation by providing specific information on the GAAP amounts excluded from AOI.

We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, (v) acquisition-related expenses, and (vi) income tax expense, as we believe that our results after considering these adjustments more accurately reflect our ongoing operations. To calculate AOI margin, we divided AOI (as calculated above) by net revenue. For additional information, see Note 18—“Segment reporting” under Part I, Item 1—“Unaudited Consolidated Financial Statements