Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 8

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 8
---
.

Gross margin. Our gross margin increased from 35.6% in the third quarter of 2024 to 36.4% in the third 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 20.1% in the third quarter of 2024 to 20.3% in the third quarter of 2025. SG&A expenses were $262.1 million in the third quarter of 2025, up $18.8 million, or 7.7%, from $243.3 million in the third quarter of 2024. The increase was primarily due to an increase in our support headcount, wage inflation and increased strategic investments in partnerships, alliances, and other sales and marketing capabilities in the third quarter of 2025 compared to the third quarter of 2024.

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $8.3 million in the third quarter of 2025, up $1.8 million, or 27.6%, from $6.5 million in the third quarter of 2024. This increase was primarily driven by the amortization of acquired intangible assets from our recent acquisition of XponentL, partially offset by the completion of useful lives of intangible assets acquired in prior periods.  For additional information about the acquisition of XponentL, see Note 3—“Business Acquisitions” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.

Other operating (income) expense, net. Other operating expense (net of income) was $7.6 million in the third quarter of 2025, compared to Other operating income (net of expense) of $0.0 million in the third quarter of 2024. The increase in other operating expense (net of income) was primarily driven by the abandonment of certain leased premises in the third quarter of 2025. 

Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues decreased from 15.0% in the third quarter of 2024 to 14.8% in the third quarter of 2025. Income from operations increased by $10.0 million from $181.7 million in the third quarter of 2024 to $191.6 million in the third quarter of 2025