Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 101

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 101
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 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” above.

The following table shows the reconciliation of AOI to net income, the most directly comparable GAAP measure, for the three months ended June 30, 2024 and 2025:

 Three months endedJune 30,20242025(dollars in millions)Net income$122.0 $132.7 Foreign exchange gains, net(2.5)(0.4)Interest (income) expense, net13.5 13.5 Income tax expense40.4 44.0 Stock-based compensation expense18.4 21.8 Acquisition-related expenses— 1.3 Amortization of acquired intangible assets6.5 4.3 Adjusted income from operations$198.4 $217.3 

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The following table sets forth our AOI by segment for the three months ended June 30, 2024 and 2025: 

Three months endedJune 30,Percentage Change Increase/(Decrease)202