Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 193

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 193
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 revenue from Advanced Technology Solutions as well as ramp-ups of services from recently signed deals. Net revenues from our High Tech and Manufacturing segment increased by 11.7% in the first half of 2025 compared to the first half of 2024, primarily driven by ramp-ups of services from recently signed deals.

Cost of revenue. Cost of revenue was $1,590.3 million in the first half of 2025, up $95.7 million, or 6.4%, from $1,494.6 million in the first half of 2024. The increase in cost of revenue in the first half of 2025 compared to the first half of 2024 was primarily due to (i) an increase in our operational headcount to support revenue growth as well as wage inflation, (ii) higher stock-based compensation expense, (iii) increased spending on professional services, and (iv) an increase in costs for resold partnership technologies in the first half of 2025 compared to the first half of 2024.

Gross margin. Our gross margin increased from 35.2% in the first half of 2024 to 35.6% in the first half of 2025. The increase in gross margin was primarily due to improved operating leverage in the first half of 2025 compared to the first half of 2024.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues were flat at 20.6% in the first half of 2024 compared to the first half of 2025. SG&A expenses were $507.5 million in the first half of 2025, up $32.8 million, or 6.9%, from $474.7 million in the first half of 2024. This increase was primarily driven by (i) higher stock-based compensation expense, (ii) a higher allowance for credit losses, (iii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, (iv) increased spending on professional services, and (v) wage inflation in the first half of 2025 compared to the first half of 2024. 

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $8.6 million in the first half of 2025, down $4.8 million, or 36.0%, from $13.5 million in the first half of 2024. This