Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 105

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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.6% in the third quarter of 2024 to 4.8% in the third quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.

Other income (expense), net. Our other income (net of expense) was $6.8 million in the third quarter of 2025, compared to $5.1 million in the third quarter of 2024, primarily due to a greater gain on the fair value of deferred compensation plan assets in the third quarter of 2025 than in the third quarter of 2024.

Income tax expense. Our income tax expense was $43.5 million in the third quarter of 2025, up from $42.7 million in the third quarter of 2024, due to higher pre-tax income, representing an effective tax rate (“ETR”) of 23.0% in the third quarter of 2025, down from 24.3% in the third quarter of 2024. The decrease in our ETR in the third quarter of 2025 was primarily driven by the mix of our pre-tax income and the impact of discrete items.

Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 11.3% in the third quarter of 2025, up from 11.0% in the third quarter of 2024. 

Adjusted income from operations. Adjusted income from operations (“AOI”) increased by $15.9 million, from $213.0 million in the third quarter of 2024 to $228.9 million in the third quarter of 2025. Our AOI margin increased from 17.6% in the third quarter of 2024 to 17.7% in the third quarter of 2025, largely driven by higher gross margin, partially offset by higher SG&A expense in the third quarter of 2025 compared to the third 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 AO