Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 113

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 113
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9% in the nine months ended September 30, 2024 to 17.4% in the nine months ended September 30, 2025, largely driven by a higher gross margin, partially offset by higher SG&A expense in the nine months ended September 30, 2025 compared to the nine months ended September 30, 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 AOI versus net income calculated in accordance with GAAP is that AOI excludes certain recurring costs and certain other charges, namely stock-based compensation and amortization of acquired intangibles. We compensate for this limitation by providing specific information on the GAAP amounts excluded from AOI.

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We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, (v) acquisition-related expenses and (vi) income tax expense, as we believe that our results after considering these adjustments more accurately reflect our ongoing operations. To calculate AOI margin, we divided AOI (as calculated above) by net revenue. For additional information, see Note 18—“Segment reporting” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.

The following table shows the reconciliation of AOI to net income, the most directly comparable GAAP measure, for the nine months ended September 30, 2024 and 2025:

 Nine months endedSeptember 30,20242025(dollars in millions)Net income$371.8 $409.4 Foreign exchange gains, net(4.4)(5.3)Interest (income) expense, net36.2 37.7 Income tax expense122.5 131.9 Stock-based compensation expense47.3 64.1 Amortization and impairment of acquired intangible assets20.0 16.9 Acquisition-related expenses— 1.3 Adjusted income