Genpact LTD
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
G$42.27+2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001398659-25-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0001398659-25-000098
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 173 current paragraphs.
87 unchanged; 45 reworded; 30 added; 8 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 11 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
•claims and lawsuits, including by clients, employees or other third parties;
Current report
In the quarter ended June 30, 2025, we recorded net revenues of $1,254.4 million. $599.3 million of our total net revenues was from Data-Tech-AI and the remaining $655.2 million was from Digital Operations. Net revenues from Advanced Technology Solutions were $292.7 million and net revenues from Core Business Services were $961.8 million.
Current report
Prior to the quarter commencing April 1, 2025, we disaggregated our revenue as revenue from either Digital Operations or Data-Tech-AI based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions or Core Business Services.
Current report
Net revenues disaggregated between Data-Tech-AI and Digital Operations were as follows:
Current report
Net revenues from Data-Tech-AI in the second quarter of 2025 were $599.3 million, up $53.3 million, or 9.7%, from $546.0 million in the second quarter of 2024. This increase was largely driven by increased demand for our data and AI solutions and services as well as technology services in the second quarter of 2025 compared to the second quarter of 2024.
Current report
Net revenues disaggregated between Advanced Technology Solutions and Core Business Services were as follows:
Current report
Net revenues from Advanced Technology Solutions in the second quarter of 2025 were $292.7 million, up $43.2 million, or 17.3%, from $249.5 million in the second quarter of 2024. This increase was largely driven by increased demand for our data and AI solutions and services in the second quarter of 2025 compared to the second quarter of 2024.
Current report
Net revenues from Core Business Services in the second quarter of 2025 were $961.8 million, up $35.0 million, or 3.8%, from $926.8 million in the second quarter of 2024, primarily due to an increase in revenue from Digital Operations and technology services in the second quarter of 2025 compared to the second quarter of 2024.
Current report
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 6.1% and 1.1%, respectively, in the second quarter of 2025 compared to the second quarter of 2024, largely due to an increase in demand for our Advanced Technology Solutions. Net revenues from our High Tech and Manufacturing segment increased by 12.5% in the second quarter of 2025 compared to the second quarter of 2024, primarily driven by ramp-ups of services from recently signed deals.
Current report
Cost of revenue. Cost of revenue was $804.4 million in the second quarter of 2025, up $44.5 million, or 5.9%, from $759.8 million in the second quarter of 2024. This increase was primarily due to (i) an increase in our operational headcount to support revenue growth as well as wage inflation, (ii) increased spending on professional services, and (iii) an increase in costs for resold partnership technologies in the second quarter of 2025 compared to the second quarter of 2024.
Current report
Gross margin. Our gross margin increased from 35.4% in the second quarter of 2024 to 35.9% in the second quarter of 2025 primarily due to improved operating leverage.
Current report
Other operating (income) expense, net. Other operating income (net of expense) was $0.0 million in the second quarter of 2025, consistent with $0.1 million in the second quarter of 2024.
Current report
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues decreased from 14.5% in the second quarter of 2024 to 14.3% in the second quarter of 2025. Income from operations increased by $9.1 million from $170.3 million in the second quarter of 2024 to $179.4 million in the second quarter of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses in the second quarter of 2025 compared to the second quarter of 2024.
Current report
Income tax expense. Our income tax expense was $44.0 million in the second quarter of 2025, up from $40.4 million in the second quarter of 2024, representing an effective tax rate (“ETR”) of 24.9% in the second quarter of 2025, unchanged from the second quarter of 2024.
Current report
AOI of our Financial Services and High Tech and Manufacturing segments increased by 19.5% and 20.7%, respectively, primarily driven by higher revenues and operating efficiency in the second quarter of 2025 compared to the second quarter of 2024. AOI of our Consumer and Healthcare segment increased by 7.5%, largely due to operating efficiency in the second quarter of 2025 compared to the second quarter of 2024.
Current report
Six Months Ended June 30, 2025 compared to the Six Months Ended June 30, 2024
Current report
Net revenues. Our net revenues were $2,469.3 million in the first half of 2025, up $161.9 million, or 7.0%, from $2,307.4 million in the first half of 2024.
Current report
Our average headcount increased by 9.7% to approximately 144,900 in the first half of 2025 from approximately 132,100 in the first half of 2024.
Current report
Prior to the quarter commencing April 1, 2025, we disaggregated our revenue as revenue from either Digital Operations or Data-Tech-AI based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions or Core Business Services.
Current report
Net revenues disaggregated between Data-Tech-AI and Digital Operations were as follows:
Current report
Net revenues from Data-Tech-AI in thefirst half of 2025 were $1,181.2 million, up $111.3 million, or 10.4%, from $1,069.9 million in thefirst half of 2024. This increase was largely driven by increased demand for our data and AI solutions and services as well as technology services in thefirst half of 2025 compared to thefirst half of 2024.
Current report
Net revenues from Digital Operations in thefirst half of 2025 were $1,288.1 million, up $50.6 million, or 4.1%, from $1,237.6 million in thefirst half of 2024, primarily due to ramp-ups of services from recently signed deals.
Current report
Net revenues disaggregated between Advanced Technology Solutions and Core Business Services were as follows:
Current report
Net revenues from Advanced Technology Solutions in thefirst half of 2025 were $570.3 million, up $81.0 million, or 16.5%, from $489.3 million in thefirst half of 2024. This increase was largely driven by demand for our data and AI solutions and services in thefirst half of 2025 compared to thefirst half of 2024.
Current report
Net revenues from Core Business Services in thefirst half of 2025 were $1,899.1 million, up $80.9 million, or 4.5%, from $1,818.1 million in thefirst half of 2024, primarily due to an increase in revenue from Digital Operations and technology services in thefirst half of 2025 compared to thefirst half of 2024.
Current report
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues were flat at 20.6% in thefirst half of 2024 compared to the first half of 2025. SG&A expenses were $507.5 million in thefirst half of 2025, up $32.8 million, or 6.9%, from $474.7 million in thefirst half of 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 inflationin the first half of 2025 compared to the first half of 2024.
Current report
Other income (expense), net. Our other income (net of expense) was $12.1 million in the first half of 2025, compared to $9.0 million in the first half of 2024, primarily due to a $2.4 million gain on a one-time sale of certain IT assets in the first half of 2025.
Current report
Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.7% in the first half of 2025, up from 10.4% in the first half of 2024.
Current report
Adjusted income from operations. Adju sted income from operations (“AOI”) increased by $46.7 million, from $380.3 million in thefirst half of 2024 to $427.0 million in thefirst half of 2025. Our AOI margin increased from 16.5% in thefirst half of 2024 to 17.3% in thefirst half of 2025, largely driven by a higher gross margin, partially offset by higher SG&A expense in thefirst half of 2025 compared to thefirst half of 2024.
Current report
AOI of our Financial Services segment, Consumer and Healthcare segment, and High Tech and Manufacturing segment increased by 21.5%, 6.4% and 18.4%, respectively, in the first half of 2025 compared to the first half of 2024, primarily driven by higher revenues and operating efficiency.
Removed paragraphs (8)
Previous report
In the quarter ended March 31, 2025, we recorded net revenues of $1,214.9 million, of which $581.9 million, or 47.9%, was from Data-Tech-AI services, with the remaining $633.0 million, or 52.1%, from Digital Operations services.
Previous report
Revenues by nature of services provided were as follows:
Previous report
Net revenues from Data-Tech-AI services in the first quarter of 2025 were $581.9 million, up $58.1 million, or 11.1%, from $523.8 million in the first quarter of 2024. This increase was largely driven by demand for our technology services and data capabilities services in the first quarter of 2025 compared to the first quarter of 2024.
Previous report
*Not Meaningful
Previous report
AOI of our Financial Services segment increased to $58.2 million in the first quarter of 2025 from $47.0 million in the first quarter of 2024, primarily driven by higher revenues and operating efficiency in the first quarter of 2025 compared to the first quarter of 2024. AOI of our Consumer and Healthcare segment increased to $70.3 million in the first quarter of 2025 from $66.8 million in the first quarter of 2024, largely due to higher revenue from large deal ramp-ups and an improvement in the revenue mix, with higher margins in the first quarter of 2025 compared to the first quarter of 2024. AOI of our High Tech and Manufacturing segment increased to $80.1 million in the first quarter of 2025 from $69.0 million in the first quarter of 2024, primarily driven by higher revenues and operating efficiencies in the first quarter of 2025 compared to the first quarter of 2024.
Previous report
*Not Meaningful
Previous report
As of March 31, 2025, $559.1 million of our $561.6 million in cash and cash equivalents was held by our non-Bermuda subsidiaries. $158.2 million of this cash was held by subsidiaries for which we expect to incur and have accrued a deferred tax liability on the repatriation of $111.7 million of retained earnings. $194.3 million of the cash and cash equivalents was held by subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation. The remaining $206.6 million in cash and cash equivalents held by our subsidiaries is being indefinitely reinvested.
Previous report
1—“Unaudited Consolidated Financial Statements” above.
Reworded paragraphs (45)
Previous wording
Recently announced broad-based tariffs by the U.S., and threatened or imposed retaliatory measures by other countries, have contributed to increased macroeconomic uncertainty in global markets, which may impact our revenue growth. Extended periods of slower sales cycles could have a material adverse affect on our business, financial position and results of operations.
Current wording
Recently announced broad-based tariffs by the U.S., and threatened or imposed retaliatory measures by other countries, have contributed to increased macroeconomic uncertainty in global markets, which may impact our revenue growth. Extended periods of slower sales cycles could have a material adverse effect on our business, financial position and results of operations.
Previous wording
Geopolitical tensions have also intensified globally. The ongoing conflict between Russia and Ukraine, instability in the Middle East and recent escalations in the conflict between India and Pakistan are contributing to global market volatility and regional instability. While we do not have operations in Russia or Ukraine and have limited operations in Israel, we have significant delivery operations in India. We are actively monitoring the evolving situation between India and Pakistan and have implemented contingency plans to help ensure continuity of operations and employee safety. To date, none of these conflicts have had a material impact on our business, financial position or operations, but it is difficult to anticipate the future impacts of these conflicts on our business or our clients’ businesses.
Current wording
Geopolitical tensions have also intensified globally. The ongoing conflict between Russia and Ukraine and instability in the Middle East are contributing to global market volatility and regional instability. We do not have operations in Russia or Ukraine and have limited operations in Israel. To date, these conflicts have not had a material impact on our business, financial position or operations, but it is difficult to anticipate the future impacts of these conflicts on our business or our clients’ businesses.
Previous wording
We are a global advanced technology services and solutions company. Powered by our mix of deep industry expertise, operational excellence, and advanced technology, we help companies reimagine finance and risk, supply chain and other core industry operations. We have over 145,000 employees serving clients in key industry verticals from more than 35 countries. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
Current wording
We are a global advanced technology services and solutions company. Powered by our mix of deep industry expertise, operational excellence, and advanced technology, we help companies reimagine finance and risk, supply chain and other core industry operations. We have over 146,000 employees serving clients in key industry verticals from more than 35 countries. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
Previous wording
For a description of ourcritical accounting policies and estimates, see Note 2—“Summary of significant accounting policies” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above, as well as Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2025 from those described in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
For a description of ourcritical accounting policies and estimates, see Note 2—“Summary of significant accounting policies” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above, as well as Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2025 from those described in our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
Due to rounding, the numbers presented in the tables included in this “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided.
Current wording
Due to rounding, the numbers presented in the tables or in the narrative included in this “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided.
Previous wording
The following table sets forth certain data from our consolidated statements of income for the three months ended March 31, 2024 and 2025.
Current wording
The following table sets forth certain data from our consolidated statements of income for the three and six months ended June 30, 2024 and 2025.
Previous wording
Net revenues. Our net revenues were $1,214.9 million in the first quarter of 2025, up $83.7 million, or 7.4%, from $1,131.2 million in the first quarter of 2024.
Current wording
Net revenues. Our net revenues were $1,254.4 million in the second quarter of 2025, up $78.2 million, or 6.6%, from $1,176.2 million in the second quarter of 2024.
Previous wording
Our average headcount increased by 9.5% to approximately 142,900 in the first quarter of 2025 from approximately 130,500 in the first quarter of 2024.
Current wording
Our average headcount increased by 9.9% to approximately 146,900 in the second quarter of 2025 from approximately 133,700 in the second quarter of 2024.
Previous wording
Net revenues from Digital Operations services in the first quarter of 2025 were $633.0 million, up $25.6 million, or 4.2%, from $607.4 million in the first quarter of 2024, primarily due to ramp-ups of services from recently signed deals.
Current wording
Net revenues from Digital Operations in the second quarter of 2025 were $655.2 million, up $25.0 million, or 4.0%, from $630.2 million in the second quarter of 2024, primarily due to ramp-ups of services from recently signed deals.
Previous wording
Revenues by reportable segment were as follows:
Current wording
Net revenues by reportable segment were as follows:
Previous wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues decreased from 20.8% in the first quarter of 2024 to 19.8% in the first quarter of 2025. SG&A expenses were $241.1 million in the first quarter of 2025, up $6.1 million, or 2.6%, from $235.0 million in the first quarter of 2024. The increase was primarily driven by higher stock-based compensation expense, increased strategic investments in partnerships, alliances, and other sales and marketing capabilities as well as wage inflationin thefirst quarter of 2025 compared to thefirst quarter of 2024. This increase was partially offset by improved operating leverage and a lower allowance for credit losses in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.4% in the second quarter of 2024 to 21.2% in the second quarter of 2025. SG&A expenses were $266.4 million in the second quarter of 2025, up $26.8 million, or 11.2%, from $239.6 million in the second quarter of 2024. The increase was primarily due to (i) an increase in our support headcount and wage inflation, (ii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities and (iii) a higher allowance for credit losses in thesecond quarter of 2025 compared to thesecond quarter of 2024.
Previous wording
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $4.3 million in the first quarter of 2025, down $2.6 million, or 37.6%, from $6.9 million in the first quarter of 2024. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.
Current wording
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $4.3 million in the second quarter of 2025, down $2.3 million, or 34.2%, from $6.6 million in the second quarter of 2024. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.
Previous wording
Foreign exchange gains, net. We recorded a net foreign exchange gain of $1.3 million in the first quarter of 2025 compared to a net foreign exchange gain of $0.8 million in the first quarter of 2024. The gain in the first quarter 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 quarter of 2024 resulted primarily from the depreciation of the Indian rupee against the U.S. dollar.
Current wording
Foreign exchange gains, net. We recorded a net foreign exchange gain of $0.4 million in the second quarter of 2025 compared to $2.5 million in the second quarter of 2024. The gain in the second quarter of 2025 resulted primarily from gains on fair value hedges, partially offset by losses resulting from the appreciation of the Indian rupee against the U.S. dollar. The gain in the second quarter of 2024 resulted primarily from gains on fair value hedges and the depreciation of the Indian rupee against the U.S. dollar.
Previous wording
Other income (expense), net. Our other income (net of expense) was $1.7 million in the first quarter of 2025, compared to $5.8 million in the first quarter of 2024, primarily due to a lower gain on changes in the fair value of assets in our deferred compensation plan in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
Other income (expense), net. Our other income (net of expense) was $10.4 million in the second quarter of 2025, compared to $3.3 million in the second quarter of 2024, primarily due to a $4.6 million larger gain on the fair value of deferred compensation plan assets in the second quarter of 2025 compared to the second quarter of 2024.
Previous wording
Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.8% in the first quarter of 2025, up from 10.3% in the first quarterof 2024.
Current wording
Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.6% in the second quarter of 2025, up from 10.4% in the second quarterof 2024.
Previous wording
Adjusted income from operations. Adju sted income from operations (“AOI”) increased by $27.9 million, from $181.9 million in the first quarter of 2024 to $209.7 million in the first quarter of 2025. Our AOI margin increased from 16.1% in the first quarter of 2024 to 17.3% in the first quarter of 2025, largely driven by higher gross margin and improved SG&A leverage in thefirst quarter of 2025 compared tothe first quarter of 2024.
Current wording
Adjusted income from operations. Adju sted income from operations (“AOI”) increased by $18.9 million, from $198.4 million in the second quarter of 2024 to $217.3 million in the second quarter of 2025. Our AOI margin increased from 16.9% in the second quarter of 2024 to 17.3% in the second quarter of 2025, largely driven by higher gross margin and an increase in other income, partially offset by higher SG&A expense in thesecond quarter of 2025 compared tothe second quarter of 2024.
Previous wording
We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization and impairment of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, and (v) 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 17—“Segment reporting” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.
Current wording
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.
Previous wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, Australian dollar, Japanese yen and Indian rupee against the U.S. dollar, our net revenues grew 8.3% in the first quarter of 2025 compared to the first quarter of 2024 on a constant currency 1 basis. We provide information about our revenue growth on a constant currency 1 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance. Net revenues on a constant currency 1 basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and adjusted for hedging gains/losses.
Current wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the Australian dollar and Indian rupee against the U.S. dollar, our net revenues grew 7.3% in the first half of 2025 compared to the first half of 2024 on a constant currency 2 basis. We provide information about our revenue growth on a constant currency 2 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance.
Previous wording
Net revenues from our Financial Services segment increased by 6.8% in the first quarter of 2025 compared to the first quarter of 2024, largely due to an increase in technology services as well as ramp-ups of services from recently signed deals. Net revenues from our Consumer and Healthcare segment increased by 4.2% in the first quarter of 2025 compared to the first quarter of 2024, largely driven by an increase in finance and accounting services. Net revenues from our High Tech and Manufacturing segment increased by 10.9% in the first quarter of 2025 compared to the first quarter of 2024, largely driven by ramp-ups of services from recently signed deals and an increase in trust and safety and supply chain services.
Current wording
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 6.4% and 2.6%, respectively, in thefirst half of 2025 compared to thefirst half of 2024, largely due to an increase in revenue from Advanced Technology Solutions as well as ramp-ups of services from recently signed deals. Net revenues from our High Tech and Manufacturing segment increased by 11.7% in thefirst half of 2025 compared to thefirst half of 2024, primarily driven by ramp-ups of services from recently signed deals.
Previous wording
Cost of revenue. Cost of revenue was $785.9 million in the first quarter of 2025, up $51.2 million, or 7.0%, from $734.8 million in the first quarter of 2024. The increase in cost of revenue in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) increased spending on professional services, and (iv) higher stock-based compensation expense in thefirst quarter of 2025 compared to thefirst quarter of 2024.
Current wording
Cost of revenue. Cost of revenue was$1,590.3 million in the first half of 2025, up$95.7 million, or 6.4%, from $1,494.6 million in the first half of 2024. The increase in cost of revenue in the first half of 2025 compared to the first half of 2024 was primarily due to (i) an increase in our operational headcount to support revenue growth as well as wage inflation, (ii) higher stock-based compensation expense, (iii) increased spending on professional services, and (iv) an increase in costs for resold partnership technologies in thefirst half of 2025 compared to thefirst half of 2024.
Previous wording
Gross margin. Our gross margin increased from 35.0% in the first quarter of 2024 to 35.3% in the first quarter of 2025. The increase in gross margin was primarily due to improved operating leverage in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
Gross margin. Our gross margin increased from 35.2% in the first half of 2024 to 35.6% in the first half of 2025. The increase in gross margin was primarily due to improved operating leverage in the first half of 2025 compared to the first half of 2024.
Previous wording
Other operating (income) expense, net. Other operating income (net of expense) was $0.1 million in the first quarter of 2025, compared to $5.5 million in the first quarter 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 quarter of 2024, with no corresponding income recorded in the first quarter of 2025.
Current wording
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.
Previous wording
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased from 14.1% in the first quarter of 2024 to 15.1% in the first quarter of 2025. Income from operations increased by $23.7 million from $160.0 million in the first quarter of 2024 to $183.7 million in the first quarter of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
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.
Previous wording
Interest income (expense), net. Our interest expense (net of interest income) was $11.4 million in the first quarter of 2025, up $1.2 million from $10.2 million in the first quarter of 2024. The increase in interest expense was largely due to incremental interest expense on our senior notes issued in June 2024 and was partially offset by (i) the absence of any interest expense in the first quarter of 2025 on our senior notes issued in 2019, which were repaid in December 2024, and (ii) lower interest expense on our revolving credit facility and term loan due to lower SOFR and lower volume in the first quarter of 2025 compared to the first quarter of 2024. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.2% in the first quarter of 2024 to 4.7% in the first quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Current wording
Interest income (expense), net. Our interest expense (net of interest income) was $24.9 million in thefirst half of 2025, up $1.2 million from $23.8 million in thefirst half of 2024. Our interest income decreased from $12.4 million in thefirst half of 2024 to $10.8 million in thefirst half of 2025, due to lower interest rates and lower cash balances in thefirst half of 2025 compared to thefirst half of 2024. The increase in interest expense was largely due to incremental interest expense on our senior notes issued in June 2024 and was partially offset by (i) the absence of interest expense in the first half of 2025 on our senior notes issued in 2019, which were repaid in December 2024, and (ii) lower interest expense on our revolving credit facility and term loan due to a lower SOFR and lower volume in thefirst half of 2025 compared to thefirst half of 2024. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.3% in thefirst half of 2024 to 4.8% in thefirst half of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Previous wording
Income tax expense. Our income tax expense was $44.4 million in the first quarter of 2025, up from $39.4 million in the first quarter of 2024, representing an effective tax rate (“ETR”) of 25.3% in the first quarter of 2025, up from 25.2% in the first quarter of 2024. The change in our ETR was primarily driven by the mix of our pre-tax income and the impact of discrete items in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
Income tax expense. Our income tax expense was $88.4 million in thefirst half of 2025, up from $79.8 million in thefirst half of 2024, representing an effective tax rate (“ETR”) of 25.1% in thefirst half of 2025, up from 25.0% in thefirst half of 2024. The change in our ETR in thefirst half of 2025 was primarily driven by the mix of our pre-tax income and the impact of discrete items.
Previous wording
On February 8, 2024, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1375 per common share to $0.1525 per common share, representing an annual dividend of $0.61 per common share for 2024, up from $0.55 per common share in 2023. On March 26, 2024, we paid a dividend of $0.1525 per share, amounting to $27.5 million in the aggregate, to shareholders of record as of March 11, 2024.
Current wording
On February 8, 2024, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1375 per common share to $0.1525 per common share, representing an annual dividend of $0.61 per common share for 2024, up from $0.55 per common share in 2023. On March 26, 2024 and June 26, 2024, we paid a dividend of $0.1525 per share, amounting to $27.5 million and $27.3 million in the aggregate, to shareholders of record as of March 11, 2024 and June 10, 2024, respectively.
Previous wording
On February 6, 2025, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1525 per common share to $0.17 per common share, representing a planned annual dividend of $0.68 per common share for 2025, up from $0.61 per common share in 2024. On March 26, 2025, we paid a dividend of $0.17 per share, amounting to $29.8 million in the aggregate, to shareholders of record as of March 11, 2025.
Current wording
On February 6, 2025, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1525 per common share to $0.17 per common share, representing a planned annual dividend of $0.68 per common share for 2025, up from $0.61 per common share in 2024. On March 26, 2025 and June 30, 2025, we paid a dividend of $0.17 per share, amounting to $29.8 million and $29.6 million in the aggregate, to shareholders of record as of March 11, 2025 and June 18, 2025, respectively.
Previous wording
As of March 31, 2025, the total authorization under our existing share repurchase program was $2,750.0 million, including $500.0 million approved in the first quarter of 2025, of which $584.0 million remained available as of March 31, 2025. Since our share repurchase program was initially authorized in 2015, we have repurchased 65,976,437 of our common shares at a weighted average price of $32.83 per share, for an aggregate purchase price of $2,166.0 million.
Current wording
As of June 30, 2025, the total authorization under our existing share repurchase program was $2,750.0 million, including $500.0 million approved in the first quarter of 2025, of which $554.0 million remained available as of June 30, 2025. Since our share repurchase program was initially authorized in 2015, we have repurchased 66,667,635 of our common shares at a weighted average price of $32.94 per share, for an aggregate purchase price of $2,196.0 million.
Previous wording
During the three months ended March 31, 2024 and 2025, we repurchased 864,925 and 1,206,812 of our common shares, respectively, on the open market at a weighted average price of $34.67 and $52.17 per share, respectively, for an aggregate purchase price of $30.0 million and $63.0 million, respectively. All repurchased shares have been retired.
Current wording
During the six months ended June 30, 2024 and 2025, we repurchased 2,784,988 and 1,898,010 of our common shares, respectively, on the open market at a weighted average price of $33.26 and $48.98 per share, respectively, for an aggregate purchase price of $92.6 million and $93.0 million, respectively. All repurchased shares have been retired.
Previous wording
Cash flows used for/provided by operating activities. Net cash provided by operating activities was $40.4 million in the three months ended March 31, 2025 compared to cash used for operating activities of $25.6 million in the three months ended March 31, 2024. This change was primarily driven by (i) a $13.9 million increase in net income in the three months ended March 31, 2025 compared to the three months ended March 31, 2024, (ii) a $41.5 million decrease in operating assets and liabilities primarily driven by lower accounts receivable balances and lower other compensation related payments, partially offset by higher vendor related payments and lower service tax refunds in India in the three months ended March 31, 2025 compared to the three months ended March 31, 2024, and (iii)a $10.5 million increase in non-cash expense, primarily due to higher stock-based compensation expense and an unrealized (gain)/ loss on the revaluation of foreign currency assets/liabilities in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This increase was partially offset by a decrease in the allowance for credit losses and deferred tax expense in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Cash flows provided by operating activities. Net cash provided by operating activities was $217.8 million in the six months ended June 30, 2025 compared to $183.7 million in the six months ended June 30, 2024. This increase was primarily driven by (i) a $24.6 million increase in net income in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, (ii) an $18.2 million increase in non-cash expense, primarily due to higher stock-based compensation expense, an unrealized (gain)/loss on the revaluation of foreign currency assets/liabilities and a higher allowance for credit losses, partially offset by lower deferred tax expense and lower amortization of acquired intangible assets in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, and (iii) an $8.8 million increase in operating assets and liabilities primarily driven by higher customer-related payments, lower service tax refunds in India, higher income tax payments, partially offset by lower employee and vendor-related payments in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Previous wording
Cash flows used for/provided by investing activities. Our net cash provided by investing activities was $0.8 million in the three months ended March 31, 2025 compared to net cash used for investing activities of $24.7 million in the three months ended March 31, 2024. Net cash provided by investing activities increased primarily due to the maturity of $23.4 million in term deposits in the three months ended March 31, 2025 compared to no proceeds from investments in the three months ended March 31, 2024. Cash used for payments (net of sales proceeds) for the purchase of property, plant and equipment and internally generated intangible assets in the three months ended March 31, 2025 was $2.1 million lower than in the three months ended March 31, 2024.
Current wording
Cash flows used for investing activities. Our net cash used for investing activities was $104.4 million in the six months ended June 30, 2025 compared to $44.4 million in the six months ended June 30, 2024. Net cash used by investing activities increased primarily due to the payment of $80.6 million for business acquisitions, net of cash acquired, in the six months ended June 30, 2025. This increase in net cash used was partially offset by proceeds of $23.4 million from the maturity of term deposits in the six months ended June 30, 2025, compared to no proceeds from investments in the six months ended June 30, 2024.
Previous wording
Cash flows used for financing activities. Our net cash used by financing activities was $125.5 million in the three months ended March 31, 2025 compared to $48.2 million in the three months ended March 31, 2024. This change was primarily due to (i) higher payments for stock repurchased and retired (including related expenses), amounting to $63.0 million in the three months ended March 31, 2025 compared to $30.0 million in the three months ended March 31, 2024, (ii) higher repayment of borrowings (net of proceeds), amounting to $6.6 million in the three months ended March 31, 2025 compared to proceeds from borrowings (net of repayment) of $26.8 million in the three months ended March 31, 2024, and (iii) higher payments for the net settlement of stock-based awards, amounting to $30.7 million in the three months ended March 31, 2025 compared to $20.8 million in the three months ended March 31, 2024.
Current wording
Cash flows used for/provided by financing activities. Our net cash used by financing activities was $106.7 million in the six months ended June 30, 2025 compared to net cash provided by financing activities of $202.3 million in the six months ended June 30, 2024. This change was primarily due to (i) lower proceeds from borrowings (net of repayments and debt issuance and refinancing costs), amounting to $71.8 million in the six months ended June 30, 2025 compared to $366.8 million in the six months ended June 30, 2024, (ii) higher payments for the net settlement of stock-based awards, amounting to $30.9 million in the six months ended June 30, 2025 compared to $21.1 million in the six months ended June 30, 2024, and (iii) higher dividend payments of $59.4 million in the six months ended June 30, 2025 compared to $54.8 million in the six months ended June 30, 2024.
Previous wording
As of December 31, 2024 and March 31, 2025, our outstanding term loan, net of debt amortization expense of $0.9 million and $0.8 million, respectively, was $476.1 million and $469.5 million, respectively.
Current wording
As of December 31, 2024 and June 30, 2025, our outstanding term loan, net of debt amortization expense of $0.9 million and $0.7 million, respectively, was $476.1 million and $463.0 million, respectively.
Previous wording
We also have fund-based and non-fund based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2024 and March 31, 2025, the limits available under such facilities were $22.4 million and $27.4 million, respectively, of which $8.5 million and $8.7 million, respectively, was utilized, constituting non-funded drawdown. As of December 31, 2024 and March 31, 2025, a total of $1.5 million and $1.3 million, respectively, of our revolving credit facility was utilized, all of which constituted non-funded drawdown. Our outstanding term loan and revolving credit facility expire on December 13, 2027.
Current wording
We also have fund-based and non-fund based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2024 and June 30, 2025, the limits available under such facilities were $22.4 million and $27.5 million, respectively, of which $8.5 million and $8.4 million, respectively, was utilized, constituting non-funded drawdown. As of December 31, 2024 and June 30, 2025, a total of $1.5 million and $86.3 million, respectively, of our revolving credit facility was utilized, of which $0.0 million and $85.0 million, respectively, constituted funded drawdown and $1.5 million and $1.3 million, respectively, constituted non-funded drawdown. Our outstanding term loan and revolving credit facility expire on December 13, 2027.
Previous wording
We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term SOFR and the floor rate under our term loan and make payments based on a fixed rate. As of March 31, 2025, we were party to interest rate swaps covering a total notional amount of $231.3 million. Under these swap agreements, the rate that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%.
Current wording
We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term SOFR and the floor rate under our term loan and make payments based on a fixed rate. As of June 30, 2025, we were party to interest rate swaps covering a total notional amount of $228.1 million. Under these swap agreements, the rate that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%.
Previous wording
In March 2021, Genpact Luxembourg and Genpact USA co-issued $350 million aggregate principal amount of 1.750% senior notes (the "2021 Senior Notes"). The 2021 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $3.0 million incurred in connection with the 2021 Senior Notes offering is being amortized over the life of the 2021 Senior Notes as additional interest expense. As of December 31, 2024 and March 31, 2025, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $0.8 million and$0.6 million, respectively, was $349.2 million and$349.4 million, respectively, which is payable on April 10, 2026.
Current wording
In March 2021, Genpact Luxembourg and Genpact USA co-issued $350 million aggregate principal amount of 1.750% senior notes (the "2021 Senior Notes"). The 2021 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $3.0 million incurred in connection with the 2021 Senior Notes offering is being amortized over the life of the 2021 Senior Notes as additional interest expense. As of December 31, 2024 and June 30, 2025, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $0.8 million and$0.5 million, respectively, was $349.2 million and$349.5 million, respectively, which is payable on April 10, 2026.
Previous wording
In June 2024, Genpact Luxembourg and Genpact USA co-issued $400 million aggregate principal amount of 6.000% senior notes (the "2024 Senior Notes"). The 2024 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $4.4 million incurred in connection with the 2024 Senior Notes offering is being amortized over the life of the 2024 Senior Notes as additional interest expense. As of December 31, 2024 and March 31, 2025, the amount outstanding under the 2024 Senior Notes, net of debt amortization expense of $3.9 million and$3.7 million, respectively, was $396.1 million and $396.3 million respectively, which is payable on June 4, 2029.
Current wording
In June 2024, Genpact Luxembourg and Genpact USA co-issued $400 million aggregate principal amount of 6.000% senior notes (the "2024 Senior Notes"). The 2024 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $4.4 million incurred in connection with the 2024 Senior Notes offering is being amortized over the life of the 2024 Senior Notes as additional interest expense. As of December 31, 2024 and June 30, 2025, the amount outstanding under the 2024 Senior Notes, net of debt amortization expense of $3.9 million and$3.4 million, respectively, was $396.1 million and $396.6 million respectively, which is payable on June 4, 2029.
Previous wording
For additional information, see Notes 9 and 10—“Short-term borrowings” and “Long-term debt” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.
Current wording
For additional information, see Notes 10 and 11—“Short-term borrowings” and “Long-term debt” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.
Previous wording
We use a revolving accounts receivable-based facility for managing our cash flows. As part of this arrangement, accounts receivable sold under this facility are de-recognized upon sale along with the related allowances, if any. As of each of December 31, 2024 and March 31, 2025, we had a revolving accounts receivable-based facility of $60.0 million permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business. The aggregate maximum capacity utilized at any time during the period ended December 31, 2024 and March 31, 2025 was $55.9 million and $52.9 million, respectively. The principal amount outstanding against this facility as of December 31, 2024 and March 31, 2025 was $26.6 million and $52.9 million, respectively. The cost of factoring accounts receivable sold under this facility during the three months ended March 31, 2024 and 2025 was $0.7 million and $0.7 million, respectively.
Current wording
We use a revolving accounts receivable-based facility for managing our cash flows. As part of this arrangement, accounts receivable sold under this facility are de-recognized upon sale along with the related allowances, if any. As of each of December 31, 2024 and June 30, 2025, we had a revolving accounts receivable-based facility of $60.0 million permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business. The aggregate maximum capacity utilized at any time during the period ended December 31, 2024 and June 30, 2025 was $55.9 million and $60.0 million, respectively. The principal amount outstanding against this facility as of December 31, 2024 and June 30, 2025 was $26.6 million and $59.9 million, respectively. The cost of factoring accounts receivable sold under this facility during the three and six months ended June 30, 2024 and 2025 was $0.7 million and $0.4 million, respectively, and $1.4 million and $1.1, million respectively.
Previous wording
We also have arrangements with financial institutions that manage the accounts payable program for certain of our large clients. We sell certain accounts receivable pertaining to such clients to these financial institutions on a non-recourse basis. There is no cap on the value of accounts receivable that can be sold under these arrangements. We used these arrangements to sell accounts receivable amounting to $270.2 million and $69.8 million during the periods ended December 31, 2024 and March 31, 2025, respectively, which also represents the maximum utilization under these arrangements in each such period. The cost of factoring such accounts receivable during the three months ended March 31, 2024 and 2025 was $1.2 million and $1.2 million, respectively.
Current wording
We also have arrangements with financial institutions that manage the accounts payable program for certain of our large clients. We sell certain accounts receivable pertaining to such clients to these financial institutions on a non-recourse basis. There is no cap on the value of accounts receivable that can be sold under these arrangements. We used these arrangements to sell accounts receivable amounting to $270.2 million and $144.3 million during the periods ended December 31, 2024 and June 30, 2025, respectively, which also represents the maximum utilization under these arrangements in each such period. The cost of factoring such accounts receivable during the three and six months ended June 30, 2024 and 2025 was $1.9 million and $1.4 million, respectively, and $3.0 million and $2.6 million, respectively.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, British pound and Japanese yenagainst the U.S. dollar, our net revenues grew 6.2% in the second quarter of 2025 compared to the second quarter of 2024 on a constant currency 1 basis. We provide information about our revenue growth on a constant currency 1 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance.
Current report — wording carried from elsewhere
Interest income (expense), net. Our interest expense (net of interest income) was $13.5 million in the second quarter of 2024 and 2025. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.4% in the second quarter of 2024 to 4.8% in the second quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Current report — wording carried from elsewhere
2 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.
Current report — wording carried from elsewhere
Net revenues by reportable segment were as follows:
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
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 thefirst half of 2024 was primarily due to gains on fair value hedges and the depreciation of the Indian rupee against the U.S. dollar.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
The following table shows the reconciliation of AOI to net income, the most directly comparable GAAP measure, for thesix months ended June 30, 2024 and 2025:
Current report — wording carried from elsewhere
The following table sets forth our AOI by segment for thesix months ended June 30, 2024 and 2025:
Current report — wording carried from elsewhere
AOI for “Unallocated corporate expenses” in the table above primarily represents the adjustment of allowances for credit losses and over- or under-absorption of corporate overheads, which are not allocated to any individual segment for management's internal reporting purposes. See Note 18—“Segment reporting” under Part I, Item 1— “Unaudited Consolidated Financial Statements” above.