Genpact(US:G)2025-11-07 13:58Financial Performance - Total net revenues for the three months ended September 30, 2025, increased to $1,291,257, representing a growth of 6.6% compared to $1,210,949 for the same period in 2024[11] - Gross profit for the nine months ended September 30, 2025, rose to $1,348,718, up from $1,244,294 in 2024, reflecting a year-over-year increase of 8.4%[11] - Net income for the three months ended September 30, 2025, was $145,831, a 9.8% increase from $132,818 in the same quarter of 2024[11] - Net income for the nine months ended September 30, 2025, was $409,400, an increase from $371,755 for the same period in 2024, representing a growth of approximately 10.4%[27] - The company reported a diluted earnings per share of $0.83 for the three months ended September 30, 2025, compared to $0.74 for the same period in 2024, indicating a growth of 12.2%[11] Assets and Liabilities - The company’s total assets grew from $4,987,153 as of December 31, 2024, to $5,364,152 as of September 30, 2025, marking an increase of 7.5%[8] - Current liabilities increased significantly from $963,739 as of December 31, 2024, to $1,461,641 as of September 30, 2025, representing a rise of 51.9%[8] - The company’s total equity increased from $2,389,611 as of December 31, 2024, to $2,544,530 as of September 30, 2025, marking an increase of 6.5%[8] - As of September 30, 2025, total equity amounted to $2,544,530, a decrease from $2,586,611 as of July 1, 2025, reflecting a comprehensive loss of $(95,007) and dividends paid of $(29,293)[21] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $526,161, up from $412,177 in 2024, indicating a growth of about 27.7%[27] - Cash and cash equivalents increased from $648,246 as of December 31, 2024, to $740,763 as of September 30, 2025, reflecting a growth of 14.2%[8] - Cash and cash equivalents at the end of the period were $740,763, down from $1,022,647 at the beginning of the period, reflecting a decrease of approximately 27.6%[27] Share Repurchase and Equity Changes - The company repurchased and retired 3,919,239 shares, resulting in a reduction of retained earnings by $(182,905) and total equity by $(182,944)[24] - The Company repurchased 4,720,308 and 3,919,239 common shares during the nine months ended September 30, 2024 and 2025, respectively[203] - The weighted average price per share for repurchases was $35.50 in 2024 and $46.68 in 2025, totaling $167,562 million and $182,944 million in cash, respectively[203] - Retained earnings were reduced by direct costs related to share repurchases of $294 million in 2024 and $978 million in 2025[204] - As of September 30, 2025, $464,061 million remained available for share repurchases under the existing program[205] - The Board of Directors has authorized repurchases of up to $2,750,000 million under the share repurchase program, including $500,000 million approved in Q1 2025[202] Expenses and Costs - Operating expenses for the nine months ended September 30, 2025, were $769,582, up from $717,988 in 2024, representing a year-over-year increase of 7.2%[11] - Stock-based compensation expense increased to $64,055 for the nine months ended September 30, 2025, compared to $47,276 for the same period in 2024, reflecting a rise of approximately 35.4%[27] - The net defined benefit plan costs for the nine months ended September 30, 2025, amounted to $15,798, compared to $15,032 for the same period in 2024[161] - The Company contributed a total of $38,861 to defined contribution plans during the three months ended September 30, 2025, compared to $34,722 for the same period in 2024[164] Intangible Assets and Amortization - Intangible assets are amortized over their estimated useful lives, with customer-related assets ranging from 1 to 9 years and technology-related assets from 2 to 10 years[51] - Amortization expenses for intangible assets acquired as part of business combinations for the three months ended September 30, 2025, were $8,285, compared to $6,495 for the same period in 2024[138] - The Company recorded $51,400 in customer-related intangibles and $6,000 in marketing-related intangibles from the acquisition, with a weighted average amortization period of five years[98] Credit Losses and Allowances - The company reported an increase in allowance for credit losses to $18,208 for the nine months ended September 30, 2025, compared to $12,395 in 2024, representing a rise of approximately 46.7%[27] - An allowance for credit losses is recognized for all debt instruments, with credit losses for accounts receivable estimated based on historical experience and forward-looking factors[76] - The Company recorded a charge for credit losses on deferred billings of $974 for the nine months ended September 30, 2025[102] Debt and Financing - The Company has a total outstanding long-term debt of $1,202,917 as of September 30, 2025, down from $1,221,440 as of December 31, 2024[155] - The term loan outstanding as of September 30, 2025, net of debt amortization expense, is $456,460, with quarterly payments of $6,625 required until maturity on December 13, 2027[147] - The Company issued $400,000 aggregate principal amount of 6.000% senior notes in June 2024, with an outstanding amount of $396,773 as of September 30, 2025, payable on June 4, 2029[151] - The Company utilized $1,257 of its $650,000 revolving credit facility as of September 30, 2025, with a commitment fee of 0.20% on the unutilized amount[143] Fair Value and Derivatives - As of September 30, 2025, the total fair value of financial assets increased to $87,036,000, with derivative instruments valued at $13,757,000 and deferred compensation plan assets at $73,279,000[107] - The total liabilities as of September 30, 2025, amounted to $246,232,000, with derivative instruments valued at $96,069,000 and deferred compensation plan liability at $72,663,000[107] - The fair value of deferred compensation plan assets increased from $60,991,000 in September 2024 to $73,279,000 in September 2025, reflecting a growth of approximately 20%[110] - The fair value of deferred compensation plan liabilities also increased from $60,354,000 in September 2024 to $72,663,000 in September 2025, indicating a rise of about 20%[113] Stock Options and Compensation Plans - The number of outstanding stock options decreased from 5,347,556 to 5,108,036 between January 1, 2025 and September 30, 2025[179] - The total remaining unrecognized stock-based compensation cost for options expected to vest as of September 30, 2025 was $2,060 thousand, to be recognized over 0.9 years[180] - The number of restricted share units (RSUs) outstanding increased from 2,134,269 to 2,264,642 between January 1, 2025 and September 30, 2025[183] - The total remaining unrecognized stock-based compensation cost related to RSUs as of September 30, 2025 was $56,833 thousand, to be recognized over 2.0 years[185] - The number of performance units (PUs) outstanding decreased from 3,257,804 to 2,686,881 between January 1, 2025 and September 30, 2025[192] - The total remaining unrecognized stock-based compensation cost related to PUs as of September 30, 2025 was $62,212 thousand, to be recognized over 1.9 years[196] - The compensation expense for the Employee Stock Purchase Plan (ESPP) for the three months ended September 30, 2024 and 2025 was $210 million and $227 million, respectively[201] - For the nine months ended September 30, 2024 and 2025, the compensation expense for the ESPP was $895 million and $720 million, respectively[201]