Company: GOOGL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001652044-25-000062
Chunk: 73

Company: Alphabet Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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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 the Google Search & other TAC rate. The TAC rate on Google Search & other revenues increased from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 primarily due to increases related to mobile searches. The TAC rate on Google Network revenues was substantially consistent from the three months ended June 30, 2024 to the three months ended June 30, 2025 and decreased from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to a combination of factors, none of which were individually significant.

The increase in other cost of revenues from the three and six months ended June