Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 14

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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) 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 decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.

Other operating (income) expense, net. Other operating income (net of expense) was $0.2 million in the first half of 2025, compared to $5.5 million in the first half of 2024. The decline in other operating income (net of expense) was primarily due to a gain upon the redemption of a loan note associated with the sale of a business previously classified as held for sale and the waiver by a vendor of a liability, both in the first half of 2024, with no corresponding income recorded in the first half of 2025.

Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased from 14.3% in the first half of 2024 to 14.7% in the first half of 2025. Income from operations increased by $32.9 million from $330.2 million in the first half of 2024 to $363.1 million in the first half of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses in the first half of 2025 compared to the first half of 2024.

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Foreign exchange gains, net. We recorded a net foreign exchange gain of $1.7 million in the first half of 2025, compared to $3.3 million in the first half of 2024. The gain in the first half of 2025 resulted primarily from gains on fair value hedges, partially offset by losses on remeasurement resulting from the appreciation of the Indian rupee against the U.S. dollar. The gain in the first half of 2024 was primarily due to gains on fair value hedges and the depreciation of the Indian ru