Technology

Genpact Reports Full Year and Fourth Quarter 2024 Results

Published

2 years ago

February 6, 2025

2024 Net Revenues of $4.77 billion, Up 6.5% (6.7% constant currency)1,2
2024 Data-Tech-AI Net Revenues of $2.23 billion, Up 6.9%1,2,3,4
2024 Digital Operations Net Revenues of $2.53 billion, Up 6.1% (6.5% constant currency)1,4
2024 Diluted EPS of $2.85, Down 16%; Adjusted Diluted EPS of $3.28, Up 10%5,6
Increases Quarterly Dividend by 11% and Share Repurchase Authorization by $500 million

NEW YORK, Feb. 6, 2025 /PRNewswire/ — Genpact Limited (NYSE: G), a global advanced technology services and solutions company, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“We delivered another strong quarter to close out what has been an outstanding year for Genpact. Q4 revenue grew 9% with Data-Tech-AI up 12%, driving accelerating revenue growth. For the full year, revenue grew 6.5%, with adjusted EPS growth of 10%, consistent with our long-term objective of growing adjusted EPS faster than revenue. We also delivered record new bookings of $5.7 billion, up 15%, building on exceptionally strong new bookings in 2023,” said Balkrishan “BK” Kalra, Genpact’s President and CEO. “Looking ahead, we are incredibly excited about the future as we accelerate the pace of innovation and change at Genpact. Building on our industry-specific domain expertise, our investment in Data, AI and Agentic Solutions is positioning us as a clear leader in AI-driven transformation and driving superior value for our clients.”

Key Financial Highlights – Full Year 2024

Net revenues were $4.77 billion, up 6.5% year-over-year on an as reported basis, and 6.7% on a constant currency basis.1,2Data-Tech-AI net revenues were $2.23 billion, up 6.9% year-over-year, both on an as reported and constant currency basis,1,2,4 representing 47% of total revenue.Digital Operations net revenues were $2.53 billion, up 6.1% year-over-year on an as reported basis, and 6.5% on a constant currency basis,1,4 representing 53% of total revenue.Gross profit was $1.69 billion, up 8% year-over-year, with a corresponding margin of 35.5%.Net income was $514 million, down 19% year-over-year, with a corresponding margin of 10.8%.6Income from operations was $702 million, up 11% year-over-year, with a corresponding margin of 14.7%.Adjusted income from operations was $814 million, up 7% year-over-year, with a corresponding margin of 17.1%.6,7Diluted earnings per share was $2.85, down 16% year-over-year.6Adjusted diluted earnings per share was $3.28, up 10% year-over-year.5,6 New bookings were approximately $5.7 billion, up 15% year-over-year.8Cash generated from operations was $615 million, up 25% year-over-year.Genpact repurchased approximately 7 million of its common shares during the year for total consideration of approximately $253 million at an average price per share of $38.31.

Key Financial Highlights – Fourth Quarter 2024

Net revenues were $1.25 billion, up 8.9% year-over-year on an as reported basis and 8.7% on a constant currency basis.1Data-Tech-AI net revenues were $595 million, up 11.9% year-over-year on an as reported basis, and 11.7% on a constant currency basis,1,4 representing 48% of total revenue.Digital Operations net revenues were $654 million, up 6.4% year-over-year on an as reported and 6.1% on a constant currency basis,1,4 representing 52% of total revenue.Gross profit was $446 million, up 9% year-over-year, with a corresponding margin of 35.7%.Net income was $142 million, down 51% year-over-year, with a corresponding margin of 11.4%.6Income from operations was $190 million, up 17% year-over-year, with a corresponding margin of 15.2%.Adjusted income from operations was $221 million, up 9% year-over-year, with a corresponding margin of 17.7%.6,7Diluted earnings per share was $0.79, down 50% year-over-year.6Adjusted diluted earnings per share was $0.91, up 11% year-over-year.5,6Cash generated from operations was $203 million, compared to $192 million in the fourth quarter of 2023.Genpact repurchased approximately 2 million of its common shares during the quarter for total consideration of approximately $85 million at an average price per share of $45.41.

Capital Allocation

Genpact’s Board of Directors declared a quarterly cash dividend for the first quarter of 2025 of $0.17 per common share, an 11% increase, payable on March 26, 2025 to shareholders of record as of the close of business on March 11, 2025, and approved a $500 million increase to the Company’s existing share repurchase authorization. The newly approved quarterly dividend represents a planned annual dividend of $0.68 per common share, increased from $0.61 per common share in 2024.

Outlook

Genpact’s outlook for the full year 2025 is as follows:

Net revenues in the range of $5.029 billion to $5.125 billion, representing year-over-year growth of approximately 5.5% to 7.5% as reported, or 6.2% to 8.2% on a constant currency basis.1Data-Tech-AI net revenues growth of approximately 6.2% year-over-year and Digital Operations net revenues growth of approximately 6.8% year-over-year as reported at the midpoint of the range.Data-Tech-AI net revenues growth of approximately 6.4% year-over-year and Digital Operations net revenues growth of approximately 7.9% year-over-year on a constant currency basis1 at the midpoint of the range.Gross margin of approximately 36.0%.Adjusted income from operations margin9 of approximately 17.3%.Adjusted diluted EPS10 in the range of $3.52 to $3.59.

Genpact’s outlook for the first quarter of 2025 is as follows:

Net revenues in the range of $1.202 billion to $1.213 billion, representing year-over-year growth of approximately 6.2% to 7.2% as reported, or 7.1% to 8.1% on a constant currency basis.1Data-Tech-AI net revenues growth of approximately 9.8% year-over-year and Digital Operations net revenues growth of approximately 4.1% year-over-year as reported at the midpoint of the range.Data-Tech-AI net revenues growth of approximately 10.0% year-over-year and Digital Operations net revenues growth of approximately 5.4% year-over-year on a constant currency basis1 at the midpoint of the range.Gross margin of approximately 35.0%.Adjusted income from operations margin9 of approximately 16.5%.Adjusted diluted EPS10 in the range of $0.79 to $0.80.

Our outlook for the first quarter and full year 2025 reflects foreign currency exchange rates as of January 30, 2025.

1 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.

2 Net revenues and Data-Tech-AI net revenues for the full year 2023 include $0.5 million of revenue associated with a business classified as held for sale.

3 Both on an as reported and constant currency basis.

4 Genpact updated the classification of certain revenues from Digital Operations to Data-Tech-AI in the quarter ended March 31, 2024 to more accurately reflect the nature of, and mode of delivery for, the services provided, which have evolved over time. As a result, the revenue from Digital Operations and Data-Tech-AI for the full year 2023 originally reported was $2.48 billion and $1.99 billion, respectively, which is $2.39 billion and $2.09 billion, respectively, in accordance with the updated classification. The numbers presented in this release for Data-Tech-AI net revenues and Digital Operations net revenues may not add up precisely to the total net revenues provided due to rounding.

5 Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release.

6 During the quarter and full year ended December 31, 2023, Genpact completed an intercompany transfer of certain intellectual property rights from non-US to US wholly-owned subsidiaries, which resulted in a non-recurring tax benefit of $170 million. Net income and diluted earnings per share for the quarter and full year ended December 31, 2023 included this benefit. This benefit was excluded from adjusted diluted earnings per share and adjusted income from operations for the quarter and year ended December 31, 2023.

7 Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release. Adjusted income from operations margin for the full year 2023 was derived by adjusting total revenue to exclude $0.5 million of revenue associated with a business previously classified as held for sale.

8 New bookings, an operating measure, represents the total contract value of new contracts and certain renewals, extensions and changes to existing contracts. Regular renewals of contracts with no change in scope are not counted as new bookings. Prior to 2024, new bookings of contracts with longer than five-year terms were limited to the total contract value of the initial five-year term. In 2024, Genpact updated its definition of new bookings to eliminate the five-year limitation. New bookings as reported for the full year 2023 were $4.9 billion and would have been $5.0 billion in accordance with the new definition. New bookings for the full year 2024 as reported are $5.7 billion and would have been $5.4 billion in accordance with the prior definition.

9 Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for each of GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin is attached to this release.

10 Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release.

Conference Call to Discuss Financial Results

Genpact’s management will host a conference call on February 6, 2025, at 5:00 PM ET to discuss the company’s performance for the fourth quarter and full year ended December 31, 2024. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time. A live webcast will be available on the Genpact Investor Relations website. For those unable to attend the live call, an archived replay and transcript will be available on the website shortly after the call.

About Genpact
Genpact (NYSE: G) is a global professional services and solutions firm delivering outcomes that shape the future. Our 125,000+ people across 30+ countries are driven by our innate curiosity, entrepreneurial agility, and desire to create lasting value for clients. Powered by our purpose – the relentless pursuit of a world that works better for people – we serve and transform leading enterprises, including the Fortune Global 500, with our deep business and industry knowledge, digital operations services, and expertise in data, technology, and AI.

Safe Harbor
This press release contains certain statements concerning our future growth prospects, including our outlook for 2025, financial results and other forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties, and other factors include but are not limited to general economic conditions, any deterioration in the global economic environment and its impact on our clients, our ability to develop and successfully execute our business strategies, technological innovation, including AI technology and future uses of agentic AI, generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments at sufficient speed and scale, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients’ data from security incidents or cyberattacks, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the economies and sectors in which our clients operate, a slowdown in the sectors in which we operate, the risks and uncertainties arising from our past and future acquisitions, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation and other laws and regulations, our ability to effectively execute our tax planning strategies, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, political, economic or business conditions in countries in which we operate, as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management’s current analysis of future events and should not be relied upon as representing management’s expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.

Contacts

Investors

Tyra Whelton

+1 (908) 418-2995

tyra.whelton@genpact.com

Media

Alexia Taxiarchos

+1 (617) 259-8172

alexia.taxiarchos@genpact.com

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share data and share count)

As of December 31, 2023

As of December 31, 2024

Assets

Current assets

Cash and cash equivalents

$ 583,670

$ 648,246

Short-term investments

—

23,359

Accounts receivable, net of allowance for credit losses of $18,278
and $12,094 as of December 31, 2023 and 2024, respectively

1,116,273

1,198,606

Prepaid expenses and other current assets

191,566

209,893

Total current assets

$ 1,891,509

$ 2,080,104

Property, plant and equipment, net

189,803

207,943

Operating lease right-of-use assets

186,167

182,190

Deferred tax assets

298,921

269,476

Intangible assets, net

53,028

26,950

Goodwill

1,683,782

1,669,769

Contract cost assets

202,543

200,900

Other assets, net of allowance for credit losses of $4,096 and $7,320 as
of December 31, 2023 and December 31, 2024, respectively

299,960

349,821

Total assets

$ 4,805,713

$ 4,987,153

Liabilities and equity

Current liabilities

Short-term borrowings

$ 10,000

$ —

Current portion of long-term debt

432,242

26,173

Accounts payable

27,739

36,469

Income taxes payable

38,458

35,431

Accrued expenses and other current liabilities

759,180

812,994

Operating leases liability

50,313

52,672

Total current liabilities

$ 1,317,932

$ 963,739

Long-term debt, less current portion

824,720

1,195,267

Operating leases liability

168,015

153,587

Deferred tax liabilities

11,706

15,908

Other liabilities

234,948

269,041

Total liabilities

$ 2,557,321

$ 2,597,542

Shareholders’ equity

Preferred shares, $0.01 par value, 250,000,000 authorized, none issued

—

Common shares, $0.01 par value, 500,000,000 authorized, 179,494,132
and 174,661,953, issued and outstanding as of December 31, 2023 and
2024, respectively

1,789

1,740

Additional paid-in capital

1,883,944

1,945,261

Retained earnings

1,085,209

1,236,696

Accumulated other comprehensive income (loss)

(722,550)

(794,086)

Total equity

$ 2,248,392

$ 2,389,611

Total liabilities and equity

$ 4,805,713

$ 4,987,153

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

Three months ended December 31,

2022

2023

2024

Net revenues

$ 1,102,545

$ 1,146,253

$ 1,248,741

Cost of revenue

717,337

738,699

802,969

Gross profit

$ 385,208

$ 407,554

$ 445,772

Operating expenses:

Selling, general and administrative expenses

236,557

237,419

249,157

Amortization of acquired intangible assets

9,862

7,454

6,496

Other operating (income) expense, net

11,038

(51)

(55)

Income from operations

$ 127,751

$ 162,732

$ 190,174

Foreign exchange gains (losses), net

6,080

576

(1,487)

Interest income (expense), net

(15,513)

(12,915)

(11,047)

Other income (expense), net

4,799

8,081

4,908

Income before income tax expense

$ 123,117

$ 158,474

$ 182,548

Income tax expense/(benefit)

33,405

(132,835)

40,633

Net income

$ 89,712

$ 291,309

$ 141,915

Earnings per common share

Basic

$ 0.49

$ 1.61

$ 0.81

Diluted

$ 0.48

$ 1.59

$ 0.79

Weighted average number of common shares used in computing
earnings per common share

Basic

183,371,581

180,956,638

175,880,251

Diluted

187,525,698

183,354,187

179,183,557

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

Year ended December 31,

2022

2023

2024

Net revenues

$ 4,371,172

$ 4,476,888

$ 4,767,139

Cost of revenue

2,834,774

2,906,223

3,077,073

Gross profit

$ 1,536,398

$ 1,570,665

$ 1,690,066

Operating expenses:

Selling, general and administrative expenses

938,385

913,061

967,145

Amortization of acquired intangible assets

42,667

31,463

26,476

Other operating (income) expense, net

53,195

(4,716)

(5,616)

Income from operations

$ 502,151

$ 630,857

$ 702,061

Foreign exchange gains (losses), net

15,392

4,274

2,937

Interest income (expense), net

(52,204)

(47,935)

(47,214)

Other income (expense), net

(103)

15,028

19,036

Income before income tax expense

$ 465,236

$ 602,224

$ 676,820

Income tax expense/(benefit)

111,832

(29,031)

163,150

Net income

$ 353,404

$ 631,255

$ 513,670

Earnings per common share

Basic

$ 1.92

$ 3.46

$ 2.88

Diluted

$ 1.88

$ 3.41

$ 2.85

Weighted average number of common shares used in computing
earnings per common share

Basic

184,184,930

182,345,548

178,385,972

Diluted

188,087,240

185,141,843

180,436,900

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Year ended December 31,

2022

2023

2024

Operating activities

Net income

$ 353,404

$ 631,255

$ 513,670

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

86,849

72,530

69,778

Amortization of debt issuance costs (including loss on extinguishment of debt)

2,376

1,967

2,412

Amortization of acquired intangible assets

42,667

31,463

26,476

Write-down of intangible assets and property, plant and equipment

1,377

—

Impairment charge on assets classified as held for sale

32,575

—

Loss on sale of business classified as held for sale

—

802

—

Write-down of operating lease right-of-use assets and other assets

20,307

—

Allowance for credit losses

1,583

3,979

13,806

Unrealized loss/(gain) on revaluation of foreign currency asset/liability

525

(1,061)

(11,354)

Stock-based compensation expense

77,373

88,576

66,383

Deferred tax expense (benefit)

(29,151)

(157,932)

36,610

Others, net

863

1,477

(2,179)

Change in operating assets and liabilities:

(Increase) in accounts receivable

(112,341)

(130,791)

(96,555)

(Increase) decrease in prepaid expenses, other current assets, contract cost assets,
operating lease right-of-use assets and other assets

3,822

(39,075)

(73,512)

Increase (decrease) in accounts payable

14,185

(8,215)

8,733

Increase (decrease) in accrued expenses, other current liabilities, operating lease
liabilities and other liability

(54,329)

1,862

63,340

Increase (decrease) in income taxes payable

1,585

(6,025)

(2,184)

Net cash provided by operating activities

$ 443,670

$ 490,812

$ 615,424

Investing activities

Purchase of property, plant and equipment

(50,614)

(55,421)

(82,766)

Payment for internally generated intangible assets (including intangibles under development)

(3,775)

(3,356)

(2,469)

Purchase of short term investments

—

(23,359)

Proceeds from sale of property, plant and equipment and intangible assets

2,635

Payment for business acquisitions, net of cash acquired

(33)

(682)

—

Proceeds from / (payment) for divestiture of business

17,769

(19,510)

—

Net cash used for investing activities

$ (36,593)

$ (78,944)

$ (105,959)

Financing activities

Repayment of finance lease obligations

(12,810)

(12,165)

(11,358)

Payment of debt issuance costs

(3,045)

—

(4,165)

Proceeds from long-term debt

239,130

—

400,000

Repayment of long-term debt

(620,130)

(19,875)

(433,125)

Proceeds from short-term borrowings

261,000

148,000

50,000

Repayment of short-term borrowings

(110,000)

(289,000)

(60,000)

Proceeds from issuance of common shares under stock-based compensation plans

27,751

39,485

17,215

Payment for net settlement of stock-based awards

(44,942)

(21,529)

(22,278)

Payment of earn-out consideration

(2,437)

(2,399)

—

Dividend paid

(91,837)

(100,014)

(108,466)

Payment for stock repurchased and retired (including expenses related to stock repurchased)

(214,082)

(225,499)

(252,671)

Net cash used for financing activities

$ (571,402)

$ (482,996)

$ (424,848)

Effect of exchange rate changes

(88,368)

8,033

(20,041)

Net increase (decrease) in cash and cash equivalents

(164,325)

(71,128)

84,617

Cash and cash equivalents at the beginning of the period

899,458

646,765

583,670

Cash and cash equivalents at the end of the period

$ 646,765

$ 583,670

$ 648,246

Supplementary information

Cash paid during the period for interest (including interest rate swaps)

$ 51,147

$ 47,989

$ 68,913

Cash paid during the period for income taxes, net of refunds

$ 145,979

$ 156,733

$ 113,629

Property, plant and equipment acquired under finance lease obligations

$ 7,078

$ 2,459

$ 11,483

Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following non-GAAP financial measures:

Adjusted income from operations; Adjusted income from operations margin;Adjusted diluted earnings per share; and Revenue growth on a constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered 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. Accordingly, these non-GAAP financial measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact’s GAAP financial statements to such non-GAAP financial measures should be carefully evaluated.

Given Genpact’s acquisitions of varying scale and size, and the difficulty in predicting expenses relating to acquisitions and the amortization of acquired intangibles thereof, since July 2012 Genpact’s management has used financial statements that exclude all acquisition-related expenses and amortization of acquired intangibles for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact’s operating results to those of its competitors. For the same reasons, since April 2016, Genpact’s management has excluded the impairment of acquired intangible assets from the financial statements it uses for internal management purposes. Acquisition-related expenses are excluded in the period in which an acquisition is consummated. Genpact’s management also uses financial statements that exclude stock-based compensation expense. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting ASC 718 “Compensation-Stock Compensation,” Genpact’s management believes that providing non-GAAP financial measures that exclude such expenses allows investors to make additional comparisons between Genpact’s operating results and those of other companies.

During the second quarter of 2022, Genpact approved a plan to divest a business that was no longer deemed strategic. Given the specialized nature of this business, we anticipated completing a transaction within twelve months after the end of the second quarter of 2022, and therefore, we classified the revenues and expenses related to this business as held for sale with effect from April 1, 2022. During the first quarter of 2023, the Company consummated this transaction and recorded a loss on the sale of the business. During the second quarter of 2023, the Company terminated a lease for office property which was fully impaired as part of a restructuring in the second quarter of 2022 and recorded a gain on such lease termination as restructuring income in the second quarter of 2023. During the fourth quarter of 2023, Genpact completed an intercompany transfer of certain intellectual property rights from non-US to US wholly-owned subsidiaries, which resulted in a non-recurring tax benefit of $170 million. Genpact’s management believes that excluding the loss on the sale of the business previously classified as held for sale, the revenues and expenses associated with such business, the gain on the lease termination and the non-recurring tax benefit on the transfer of intellectual property rights in calculating its non-GAAP financial measures provides useful information to both management and investors regarding the Company’s financial performance and underlying business trends. Additionally, in its calculations of non-GAAP financial measures, Genpact’s management has adjusted foreign exchange gains and losses, interest income and expense and income tax expenses from GAAP net income, and other income and expenses, and certain gains from GAAP income from operations, because management believes that the Company’s results after taking into account these adjustments more accurately reflect the Company’s ongoing operations. In its calculations of adjusted diluted earnings per share, Genpact’s management adds back stock-based compensation expense, amortization and impairment of acquired intangible assets, and acquisition-related expenses along with the related tax impact of other adjustments and excludes the non-recurring tax benefit on the transfer of intellectual property rights from GAAP diluted earnings per share. For the purpose of calculating adjusted diluted earnings per share, the combined current and deferred tax effect is determined by multiplying each pre-tax adjustment by the applicable statutory income tax rate.

Genpact’s management provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company’s true business performance. Revenue growth on a constant currency basis 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.

Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted diluted earnings per share and revenue growth on a constant currency basis, when read in conjunction with the Company’s reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

A limitation of using adjusted income from operations and adjusted income from operations margin versus income from operations, income from operations margin, net income and net income margin calculated in accordance with GAAP is that these non-GAAP financial measures exclude certain recurring costs and certain other charges, namely stock-based compensation expense and amortization and impairment of acquired intangible assets. Management compensates for this limitation by providing specific information on the GAAP amounts excluded from adjusted income from operations and adjusted income from operations margin.

The following tables show the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures for the three months and years ended December 31, 2023 and 2024:

Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin

(In thousands)

Three months ended
December 31,

Year ended
December 31,

2023

2024

2023

2024

Net income

$ 291,309

$ 141,915

$ 631,255

$ 513,670

Foreign exchange (gains) losses, net

(576)

1,487

(4,274)

(2,937)

Interest (income) expense, net

12,915

11,047

47,935

47,214

Income tax expense /(benefit)

(132,835)

40,633

(29,031)

163,150

Stock-based compensation expense

24,726

19,107

88,576

66,383

Amortization and impairment of acquired intangible assets

7,453

6,493

31,348

26,456

Restructuring (income) expense

—

(4,874)

—

Operating loss from the business classified as held for sale

—

1,201

—

Loss on the sale of business classified as held for sale

—

802

—

Adjusted income from operations

$ 202,992

$ 220,682

$ 762,938

$ 813,936

Net income margin

25.4 %

11.4 %

14.1 %

10.8 %

Adjusted income from operations margin

17.7 %

17.0 %

17.1 %

Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin

(In thousands)

Three months ended
December 31,

Year ended
December 31,

2023

2024

2023

2024

Income from operations

$ 162,732

$ 190,174

$ 630,857

$ 702,061

Stock-based compensation expense

24,726

19,107

88,576

66,383

Amortization and impairment of acquired intangible assets

7,453

6,493

31,348

26,456

Other income (expense), net

8,081

4,908

15,028

19,036

Restructuring (income) expense

—

(4,874)

—

Operating loss from the business classified as held for sale

—

1,201

—

Loss on the sale of business classified as held for sale

—

802

—

Adjusted income from operations

$ 202,992

$ 220,682

$ 762,938

$ 813,936

Income from operations margin

14.2 %

15.2 %

14.1 %

14.7 %

Adjusted income from operations margin

17.7 %

17.0 %

17.1 %

Reconciliation of Diluted EPS to Adjusted Diluted EPS11

(Per share data)

Three months ended
December 31,

Year ended
December 31,

2023

2024

2023

2024

Diluted EPS

$ 1.59

$ 0.79

$ 3.41

$ 2.85

Stock-based compensation expense

0.13

0.11

0.48

0.37

Amortization and impairment of acquired intangible assets

0.04

0.17

0.15

Restructuring (income) expense

—

(0.03)

—

Operating loss from the business classified as held for sale

—

0.01

—

Loss on the sale of business classified as held for sale

—

0.00

—

Tax impact on stock-based compensation expense

(0.01)

(0.02)

(0.10)

(0.05)

Tax impact on amortization and impairment of acquired intangible assets

(0.01)

(0.04)

Tax impact on restructuring (income) expense

—

0.01

—

Tax impact on operating loss from the business classified as held for sale

—

Tax benefit on intercompany transfer of intellectual property rights

(0.93)

—

(0.92)

—

Adjusted diluted EPS

$ 0.82

$ 0.91

$ 2.98

$ 3.28

11 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the year ending December 31, 2025:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin12

Year ending December 31, 2025

Net income margin

10.7 %

Estimated interest (income) expense, net

1.0 %

Estimated income tax expense

3.5 %

Estimated stock-based compensation expense

1.6 %

Estimated amortization and impairment of acquired intangible assets

0.5 %

Adjusted income from operations margin

17.3 %

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from

Operations Margin12

Year ending December 31, 2025

Income from operations margin

14.9 %

Estimated stock-based compensation expense

1.6 %

Estimated amortization and impairment of acquired intangible assets

0.5 %

Estimated other income (expense), net

0.3 %

Adjusted income from operations margin

17.3 %

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS12

(Per share data)

Year ending December 31, 2025

Lower

Upper

Diluted EPS

$ 3.04

$ 3.11

Estimated stock-based compensation expense

0.46

Estimated amortization and impairment of acquired intangible assets

0.15

Estimated tax impact on stock-based compensation expense

(0.08)

Estimated tax impact on amortization and impairment of acquired intangible assets

(0.04)

Adjusted diluted EPS

$ 3.52

$ 3.59

12 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending March 31, 2025:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin13

Quarter ending March 31, 2025

Net income margin

10.1 %

Estimated interest (income) expense, net

1.1 %

Estimated income tax expense

3.3 %

Estimated stock-based compensation expense

1.5 %

Estimated amortization and impairment of acquired intangible assets

0.5 %

Adjusted income from operations margin

16.5 %

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from

Operations Margin13

Quarter ending March 31, 2025

Income from operations margin

14.1 %

Estimated stock-based compensation expense

1.5 %

Estimated amortization and impairment of acquired intangible assets

0.5 %

Estimated other income (expense), net

0.3 %

Adjusted income from operations margin

16.5 %

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS13

(Per share data)

Quarter ending March 31, 2025

Lower

Upper

Diluted EPS

$ 0.68

$ 0.69

Estimated stock-based compensation expense

0.10

Estimated amortization and impairment of acquired intangible assets

0.04

Estimated tax impact on stock-based compensation expense

(0.02)

Estimated tax impact on amortization and impairment of acquired intangible assets

(0.01)

Adjusted diluted EPS

$ 0.79

$ 0.80

13 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

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SOURCE Genpact

Technology

TransPerfect Legal Recognizes Its 2026 Pro Bono Partners

Published

19 minutes ago

October 26, 2026

Key Takeaways

Translation and interpretation services for partner firm Fenwick and legal aid organizations.Helps immigrants, asylum seekers, and other vulnerable populations access the US legal system.Language support remains critical to ensuring equal access to justice.

NEW YORK, Oct. 26, 2026
/PRNewswire/ — TransPerfect Legal, the global leader in legal technology, AI, and advisory services, today announced that in honor of the 2026 National Celebration of Pro Bono, it is recognizing the legal aid organizations and partner firms it has supported this year with translation and interpretation services. These partnerships extend legal access to immigrants, asylum seekers, and other vulnerable populations who depend on accurate language support to navigate the US legal system.

The National Celebration of Pro Bono, sponsored by the American Bar Association October 25–31, brings attention to the importance of pro bono legal services and honors the lawyers and organizations working to expand access to justice.

This year, TransPerfect provided translation and interpretation services at reduced rates to Fenwick in support of the following pro bono efforts:

Fenwick — Immigration clinics and mattersCommunity Legal Services in East Palo Alto (CLSEPA) — U Visa Project with attorneys (full-scope work); passport and asylum clinicsCo-Counsel NYC — Naturalization clinicsImmigration Institute of the Bay Area (IIBA) — Naturalization clinicsLawyers’ Committee for Civil Rights of the San Francisco Bay Area (LCCRSF) — Asylum clinicsNew York Legal Assistance Group (NYLAG) — Asylum, naturalization, and TPS clinicsTahirih Justice Center — Immigration intake and U visa clinics

The need for pro bono legal support remains significant. The Pro Bono Declaration of the Americas states that “members of the legal profession have a responsibility to provide pro bono legal services”—a responsibility the Declaration links to the profession’s broader role in society and its commitment to a fair and equitable legal system.

“Access to justice depends on access to language,” said Eric Elting, Regional Director. “When someone can’t understand the proceeding that will decide their asylum claim or their immigration status, the legal system isn’t actually open to them. That’s the gap our pro bono partners work to close every day, and we’re proud to support that work.”

TransPerfect President and Co-CEO Phil Shawe commented, “Since our humble beginnings in NYC, we are proud to have performed pro bono legal work, including work to eliminate language barriers in legal processes. These efforts continue to this day.”

About TransPerfect Legal
TransPerfect Legal is the global leader in legal technology, AI, and advisory services for Am Law 200 and Global 100 law firms as well as corporate legal departments. With offices in more than 150 cities worldwide, solutions include forensic technology and consulting, eDiscovery and early data assessment, managed review and legal staffing, language services, deposition and trial support, and paper discovery, all offered alongside the Reef Technology ecosystem, TransPerfect Legal’s suite of proprietary applications that address the needs of legal and regulatory practitioners around the world. For more information, please visit www.transperfectlegal.com.

About TransPerfect
TransPerfect is the world’s largest provider of language and AI solutions for global business. From offices in over 150 cities on six continents, TransPerfect offers a full range of services in 200+ languages to clients worldwide. More than 6,000 global organizations employ TransPerfect’s GlobalLink® technology to simplify the management of multilingual content. With an unparalleled commitment to quality and client service, TransPerfect is fully ISO 9001 and ISO 17100 certified. TransPerfect has global headquarters in New York, with regional headquarters in London and Hong Kong. For more information, please visit our website at www.transperfect.com.

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SOURCE TransPerfect

Technology

Forum Edge AI Announces $94.4 Million Definitive AI Cloud Services Compute Agreement with Fireworks

Published

19 minutes ago

October 26, 2026

PALM BEACH, Fla., Oct. 26, 2026 /PRNewswire/ — Forum Markets, Incorporated (“Forum” or “the Company”) (Nasdaq: FRMM), an innovator in sourcing and operating cash-generating assets in AI infrastructure, commercial aerospace and AI-powered consumer finance, today announced that Forum Edge AI LLC (“Forum Edge”), the Company’s joint venture with Edge Node Inc., has entered into a definitive agreement with Fireworks, the specialized intelligence platform, for a 36-month reservation of Nvidia B300 GPU capacity at its existing, powered data center facility in Dallas.

The agreement carries a combined total contract value of approximately $94.4 million, reflecting GPU capacity and associated CPU management node fees payable over the 36-month term. Fireworks has provided a substantial prepayment deposit, which will be credited against fees due across the term.

The GPUs are expected to be deployed at Forum Edge’s Dallas data center in late December or early January. The Dallas facility is one of the sites included in Forum’s initial AI infrastructure investment and features existing permits, power access and physical infrastructure.

“This agreement is an important proof point for our AI infrastructure strategy and reflects our focus on bringing revenue generating GPUs to market quickly in a modular manner,” said McAndrew Rudisill, chairman and chief executive officer of Forum Markets, Incorporated. “We have a strong partnership with Fireworks and are excited about our growth trajectory as we scale our AI infrastructure business. This is the first finalized contract Forum Edge is executing against and the first of several exciting partnerships we expect to deploy into our unique footprint.”

Fireworks provides inference, training, and routing that help enterprises deploy and scale generative AI applications in production. The company was most recently valued at approximately $17.5 billion, with backers including Nvidia, Atreides Management, Index Ventures and TCV. Fireworks’ scale and the caliber of its financial backers reflect the type of high-quality counterparty Forum has identified in its off-take partnerships.

Hosted AI, Inc., through its AI commercialization network/mesh and platform, facilitated the relationship between Forum Edge AI and Fireworks.

The agreement represents Forum Edge’s first contracted customer commitment and supports Forum’s broader strategy of deploying disciplined, risk-adjusted capital into cash-generating AI infrastructure assets.

About Forum Markets, Incorporated

Forum Markets, Incorporated (Nasdaq: FRMM) is an innovative company that sources and structures cash-generating assets with attractive risk-adjusted returns in aerospace, AI, and AI-powered consumer finance. The company draws on proprietary origination pipelines and strategic co-investment partnerships to scale its portfolio and generate durable operating income. Forum integrates traditional asset management principles with hands-on operational execution as it builds a new framework for how real-world assets are owned, managed, and monetized. For more information, please visit forum-markets.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance and growth of the Company; the ability of the Company to execute its plans, the assets to be held by the Company, the Company’s current and anticipated yield strategies, and future performance. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company’s control, and actual results may differ materially. Applicable risks and uncertainties include, among others, the risk that the proposed transactions described herein may not be completed in a timely manner or at all, including the risk that the parties do not execute definitive documentation for the joint venture or any individual project; the risk that anticipated site capacity, power availability, permitting, equipment delivery or customer contracts are delayed or not obtained; the risk that equipment financing is not available on the terms or in the amounts assumed, or at all; risks relating to the Company’s recently completed offering, including dilution to existing stockholders and the risk that the net proceeds are insufficient to fund the initial projects as contemplated or are applied to uses other than those described herein; risks associated with the Company’s guarantee obligations in support of project-level financing; failure to realize the anticipated benefits of the stock repurchase program, previously announced private placements, sale of convertible notes, and related transactions, including the Company’s ability to achieve profitable operations; the Company’s ability to repurchase shares of common stock, the timing thereof, purchase price thereof, and the fact that repurchases may not be undertaken under the stock repurchase program; fluctuations in the market price of ETH that will impact the Company’s accounting and financial reporting; government regulation of tokenized securities; risks relating to the treatment of assets for U.S. and foreign tax purposes; changes in securities laws or regulations; changes in business, market, financial, political and regulatory conditions; risks relating to the Company’s OTC transaction, including the Company’s ability to repay such facility, covenants associated therewith and security interests associated therewith; risks relating to the Company’s previously announced ATM offering, including potential downward pressure on the Company’s stock price associated therewith; risks relating to the Company’s operations and businesses; risks related to increased competition in the industries in which the Company does and will operate; risks relating to significant legal, commercial, regulatory and technical uncertainty regarding digital assets generally; expectations with respect to future performance, growth and anticipated acquisitions; potential litigation involving the Company; global economic conditions; geopolitical events and regulatory changes; access to additional financing, and the potential lack of such financing; and the Company’s ability to raise funding in the future and the terms of such funding, including dilution caused thereby, as well as those risks and uncertainties identified and those identified under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as the supplemental risk factors and other information the Company has or may file with the SEC, including those disclosed under Item 8.01 of the Current Reports on Form 8-K filed by the Company with the SEC. Readers are cautioned not to place undue reliance on these statements. Investors should also be aware that under U.S. generally accepted accounting principles (GAAP), certain crypto assets must be measured at fair value, with changes recognized in net income for each reporting period. These fair value adjustments may cause significant fluctuations in the Company’s balance sheet and income statement from period-to-period. In addition, for certain crypto assets, including ETH, which the Company holds as collateral against a loan, impairment charges may be required to be reported in net income if the market price of such assets falls below the cost basis at which those assets are carried on the balance sheet. Readers are encouraged to read the Company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update any forward-looking statements except as required by law. The Company’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

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SOURCE Forum Markets, Incorporated

Technology

Perhaps Agency Expands Network Relationships for Emerging Brands

Published

19 minutes ago

October 26, 2026

Perhaps Agency’s new FuseTwo partnership and AvantLink certification give emerging brands broader access to networks, partnerships and expertise as rising paid-media costs push advertisers toward new acquisition channels.

LAS VEGAS, Oct. 26, 2026 /PRNewswire-PRWeb/ — Perhaps Agency, a full-funnel partner marketing agency specializing in affiliate and influencer marketing, announced the continued expansion of its strategic relationships with networks across the partner marketing industry, including FuseTwo, a recently launched partner marketing platform, and AvantLink, an affiliate marketing platform. These relationships give Perhaps Agency’s clients broader access to networks, technology and partnership opportunities as emerging brands seek growth channels beyond paid media.

“Every network relationship we add gives our clients another route to find the right partners. Our partnerships with FuseTwo and AvantLink build on that, and we’ll keep expanding our list of strategic partners that serve emerging brands.” — Jen Root, Managing Director, Perhaps

Rising costs across paid social and search have pushed many brands to look for acquisition channels they can scale without expanding an internal team or committing to a large retainer. Partner marketing is one route: it brings affiliate, influencer, creator and media partnerships together in one performance-based program. For growing brands, the right network relationships can determine whether an affiliate or influencer program gets off the ground. Perhaps builds and maintains those relationships on its clients’ behalf, while strengthening its ability to identify strategic opportunities and connect brands with the partners that support their growth.

Perhaps Agency’s partnership with FuseTwo, a partner marketing platform built for growing brands, offers Perhaps clients additional opportunities, resources and expertise. These brands gain access to the FuseTwo platform, which brings affiliate, influencer, creator and media partners into a single system with unified attribution. FuseTwo’s cookieless affiliate attribution and tracking, real-time reporting and AI-assisted automation give the Perhaps team faster data across every program the agency manages, supporting publisher recruitment and partner program optimization.

This approach pairs human expertise with accelerated technology. The Perhaps team, with more than two decades of combined partner marketing experience, continues to make the strategic calls, while the FuseTwo platform speeds up the analysis behind them.

As part of the partnership, Perhaps Agency is able to offer certain promotional features through the Perhaps + FuseTwo Growth Launch Offer, available to brands that register with FuseTwo through Perhaps. The features include FuseTwo covering a brand’s first month of Perhaps partner marketing management services, including strategy, recruitment and hands-on support, and Perhaps covering the brand’s FuseTwo platform setup fee. FuseTwo also offers qualifying migrating advertisers 0% transaction fees when they bring a qualifying group of active publishers to the platform. Subsequent management services are subject to the applicable service agreement, and additional terms and eligibility requirements may apply.

Beyond its partnership with FuseTwo, Perhaps is now an AvantLink Certified Agency Partner, demonstrating the company’s expertise and commitment to building network relationships for clients. AvantLink, an affiliate marketing platform, offers an agency certification program for agencies within its ecosystem. The program validates practical expertise in affiliate strategy, partner management, attribution and technology capabilities.

The certification signifies three areas: credibility, capability and visibility. Credibility reflects demonstrated knowledge of affiliate marketing strategy and program management. Capability reflects an understanding of partner relationships, attribution models, reporting and optimization. Visibility reflects opportunities for agency recommendations, preferred partner listings and co-marketing collaboration.

For Perhaps Agency, this status reinforces its expertise in affiliate marketing strategy and publisher partnerships. For growing brands, it means working with an agency that combines experienced program management with access to established affiliate marketing technology, which can help reduce the complexity of launching, managing and scaling a partner program.

About Perhaps: Perhaps Agency is a full-funnel U.S. partner marketing agency, serving as an affiliate marketing agency and influencer marketing agency for emerging and mid-market brands across Apparel, Beauty, Health & Wellness, Home Goods, CPG, DTC and more, including affiliate marketing for Shopify brands, WooCommerce affiliate marketing and affiliate marketing for CPG brands. Perhaps combines affiliate network management, influencer and creator management and Performance PR into a single, integrated partner marketing program. The Perhaps team brings more than two decades of combined affiliate and influencer marketing experience. Learn more at Perhaps.com.

Media Contact

Jen Root, Perhaps, 1 (786) 396-9863, pr@perhaps.com, www.perhaps.com

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SOURCE Perhaps