Company: GOOGL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001652044-25-000062
Chunk: 144

Company: Alphabet Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 pound was largely offset by the U.S. dollar strengthening relative to the Turkish lira.

APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Australian dollar, South Korean won, and Indian rupee.

Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Brazilian real and Mexican peso.

Costs and Expenses

43

Cost of Revenues

The following table presents cost of revenues, including TAC (in millions, except percentages):Three Months EndedSix Months Ended June 30,June 30, 2024202520242025TAC$13,387 $14,705 $26,333 $28,453 Other cost of revenues22,120 24,334 42,886 46,947 Total cost of revenues$35,507 $39,039 $69,219 $75,400 Total cost of revenues as a percentage of revenues42 %41 %42 %40 %

Cost of revenues increased $3.5 billion from the three months ended June 30, 2024 to the three months ended June 30, 2025 due to an increase in other cost of revenues and TAC of $2.2 billion and $1.3 billion, respectively. Cost of revenues increased $6.2 billion from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to an increase in other cost of revenues and TAC of $4.1 billion and $2.1 billion, respectively.

The increase in TAC from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 20.7% to 20.6% from the three months ended June 30, 2024 to the three months ended June 30, 2025 and decreased from 20.9% to 20.6% from the six months ended June 30, 2024 to the six months ended June 30, 2025, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties partially offset by an increase in