Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 204

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 204
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 Solutions and technology services.

Cost of revenue. Cost of revenue was $2,411.9 million in the nine months ended September 30, 2025, up $137.8 million, or 6.1%, from $2,274.1 million in the nine months ended September 30, 2024. This increase was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) higher stock-based compensation expense, (iv) increased spending on professional services, and (v) an increase in costs for resold partnership technologies in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Gross margin. Our gross margin increased from 35.4% in the nine months ended September 30, 2024 to 35.9% in the nine months ended September 30, 2025. The increase in gross margin was primarily due to improved operating leverage in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.4% in the nine months ended September 30, 2024 to 20.5% in the nine months ended September 30, 2025. SG&A expenses were $769.6 million in the nine months ended September 30, 2025, up $51.6 million, or 7.2%, from $718.0 million in the nine months ended September 30, 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 nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. 

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $16.9 million in the nine months ended September 30, 2025, down $3.1 million, or 15.3%, from $20.0 million in the nine months ended September 30, 2024. This decrease was primarily due to the completion of useful lives