Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 187

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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176.2 $1,254.4 6.6 %

Net revenues from our Financial Services and Consumer and Healthcare segments increased by 6.1% and 1.1%, respectively, in the second quarter of 2025 compared to the second quarter of 2024, largely due to an increase in demand for our Advanced Technology Solutions. Net revenues from our High Tech and Manufacturing segment increased by 12.5% in the second quarter of 2025 compared to the second quarter of 2024, primarily driven by ramp-ups of services from recently signed deals.

Cost of revenue. Cost of revenue was $804.4 million in the second quarter of 2025, up $44.5 million, or 5.9%, from $759.8 million in the second quarter of 2024. This increase was primarily due to (i) an increase in our operational headcount to support revenue growth as well as wage inflation, (ii) increased spending on professional services, and (iii) an increase in costs for resold partnership technologies in the second quarter of 2025 compared to the second quarter of 2024.

Gross margin. Our gross margin increased from 35.4% in the second quarter of 2024 to 35.9% in the second quarter of 2025 primarily due to improved operating leverage.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.4% in the second quarter of 2024 to 21.2% in the second quarter of 2025. SG&A expenses were $266.4 million in the second quarter of 2025, up $26.8 million, or 11.2%, from $239.6 million in the second quarter of 2024. The increase was primarily due to (i) an increase in our support headcount and wage inflation, (ii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities and (iii) a higher allowance for credit losses in the second quarter of 2025 compared to the second quarter of 2024.

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $4.3 million in the second quarter of 2025, down $2.3 million, or 34.2%, from $6.6 million in the second quarter of 2024. This decrease was primarily due to the completion of useful lives