Company: G
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001398659-25-000059
Chunk: 158

Company: Genpact LTD
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 158
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 in the first quarter of 2025. The increase in gross margin was primarily due to improved operating leverage in the first quarter of 2025 compared to the first quarter of 2024.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues decreased from 20.8% in the first quarter of 2024 to 19.8% in the first quarter of 2025. SG&A expenses were $241.1 million in the first quarter of 2025, up $6.1 million, or 2.6%, from $235.0 million in the first quarter of 2024. The increase was primarily driven by higher stock-based compensation expense, increased strategic investments in partnerships, alliances, and other sales and marketing capabilities as well as wage inflation in the first quarter of 2025 compared to the first quarter of 2024. This increase was partially offset by improved operating leverage and a lower allowance for credit losses in the first quarter of 2025 compared to the first quarter of 2024.

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $4.3 million in the first quarter of 2025, down $2.6 million, or 37.6%, from $6.9 million in the first quarter 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 $0.1 million in the first quarter of 2025, compared to $5.5 million in the first quarter 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 quarter of 2024, with no corresponding income recorded in the first quarter of 2025.

Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased from 14.1% in the first quarter of 2024 to 15.1% in the first quarter of 2025. Income from operations increased by $23.7 million from $160.0 million in the first quarter of 2024 to $183.7 million in the first quarter of 2025,