Company: GOOGL
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001652044-25-000091
Chunk: 145

Company: Alphabet Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
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Sales and marketing expenses decreased $22 million from the three months ended September 30, 2024 to the three months ended September 30, 2025, due to a combination of factors, none of which were individually significant.

Sales and marketing expenses increased $33 million from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily driven by an increase in advertising and promotional activities of $550 million, partially offset by a decrease in employee compensation expenses of $369 million.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):Three Months EndedNine Months Ended September 30,September 30, 2024202520242025General and administrative expenses$3,599 $7,393 $9,783 $16,141 General and administrative expenses as a percentage of revenues4 %7 %4 %6 %

General and administrative expenses increased $3.8 billion from the three months ended September 30, 2024 to the three months ended September 30, 2025, primarily driven by an increase in expenses related to legal and other matters of $3.8 billion, largely the result of the $3.5 billion EC fine.

General and administrative expenses increased $6.4 billion from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily driven by an increase in expenses related to legal and other matters of $6.3 billion, largely the result of the $3.5 billion EC fine accrued in the third quarter of 2025 and a $1.4 billion legal accrual made in the second quarter of 2025.

Segment Profitability

We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not allocated to our segments because they represent Alphabet-level activities. For further details on our segments, see Note 15 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.

The following table presents segment operating income (loss) (in millions):

Three Months EndedNine Months Ended September 30,September 30,2024202520242025Operating income (loss):Google Services$30,856 $33,527 $88,427 $99,272 Google Cloud1,947 3,