Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 110

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 110
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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 of intangible assets acquired in prior periods, partially offset by the amortization of acquired intangible assets from our recent acquisition of XponentL. For additional information, see Note 3—“Business Acquisitions” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.

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Other operating (income) expense, net. Other operating expense (net of income) was $7.5 million in the nine months ended September 30, 2025, compared to other operating income (net of expense) of $5.6 million in the nine months ended September 30, 2024. During the nine months ended September 30, 2024, we recorded