Grid Dynamics Reports Fourth Quarter and Full Year 2025 Financial Results Record Fourth Quarter Revenues of $106.2 million and Full Year Revenues of $411.8 million (Form 8-K)

Grid Dynamics Reports Fourth Quarter and Full Year 2025 Financial Results

Record Fourth Quarter Revenues of $106.2 million and Full Year Revenues of $411.8 million

San Ramon Calif. - March 5, 2026 - Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) ("Grid Dynamics" or the "Company"), a leader in enterprise-level artificial intelligence and digital transformation, today announced its results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter and Full Year 2025 Revenue Performance

We are pleased to report record fourth-quarter 2025 revenues of $106.2 million, slightly above the midpoint of our guidance range of $105.0 to $107.0 million provided in October 2025. This represents a 5.9% increase year-over-year. For the full year 2025, the Company achieved record revenues of $411.8 million, an increase of 17.5%, compared to $350.6 million in 2024.

Our Technology, Media and Telecom ("TMT") vertical represented 28.3% of fourth-quarter and 26.1% of full-year revenues and was the key growth driver for the quarter, with revenues increasing 5.3% sequentially and 27.5% year-over-year. The strong growth was driven by our top two technology customers. Retail was our largest vertical, comprising 28.7% of fourth-quarter and 29.3% of full-year revenues. The Finance vertical performed strongly, contributing 22.9% of fourth-quarter and 24.4% of full-year revenues, due to robust demand from our key fintech and banking customers. CPG and Manufacturing represented 10.2% of fourth-quarter revenues, remaining stable in absolute dollars sequentially while experiencing a 4.3% year-over-year decrease. Healthcare and Pharma, and Other remained relatively flat in absolute dollars both sequentially and year-over-year, contributing 2.6% and 7.3% to fourth-quarter revenues, respectively.

"I am delighted to share that Grid Dynamics closed 2025 with record revenues. Our top three customers are leaders in the AI space: two are global technology companies, and one is the largest payment technology company. AI represented 25% of our fourth quarter revenues. For 2025, our AI revenue exceeded $90 million, representing 30% year-over-year growth. We deliver clear and measurable value to our clients.

We are excited about the opportunities in 2026 and anticipate continued AI revenue growth momentum. Our company enters the next phase of our growth with a clear roadmap, a strong AI-skilled workforce, and a steadfast commitment to delivering long-term value for our shareholders, I look forward to sharing our success at leading global enterprises," said Leonard Livschitz, CEO.

Fourth Quarter 2025 Financial Highlights

•Total revenues were $106.2 million, an increase of 1.9% and 5.9% on a sequential and year-over-year basis, respectively.

•GAAP gross profit was $36.1 million, or 34.0% of revenues, in the fourth quarter of 2025, compared to $37.0 million, or 36.9% of revenues, in the prior year corresponding period.

•Non-GAAP gross profit was $36.6 million, or 34.5% of revenues, in the fourth quarter of 2025, compared to $37.6 million, or 37.5% of revenues, in the fourth quarter of 2024.

•GAAP net income was $0.3 million, or $0.00 per share, based on 86.4 million diluted weighted-average common shares outstanding, in the fourth quarter of 2025, compared to $4.5 million, or $0.05 per share, based on 83.8 million diluted weighted-average common shares outstanding, in the fourth quarter of 2024.

•Non-GAAP net income for the fourth quarter of 2025 was $8.7 million, or $0.10 per share, based on 86.4 million diluted weighted-average common shares outstanding, compared to $10.3 million, or $0.12 per share, based on 83.8 million diluted weighted-average common shares outstanding, in the prior year period.

•Non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization, other income and expenses, fair value adjustments, stock-based compensation, transaction and transformation-related costs, restructuring costs as well as geographic reorganization expenses), a non-GAAP metric, was $13.7 million, compared to $15.6 million in the fourth quarter of 2024.

2025 Full Year Financial Highlights

•Total revenues were $411.8 million, an increase of 17.5% year-over-year.

•GAAP gross profit was $142.3 million, or 34.6% of revenues, compared to $127.0 million, or 36.2% of revenues, in 2024.

•Non-GAAP gross profit was $144.5 million, or 35.1% of revenues, compared to $129.1 million, or 36.8% of revenues, in 2024.

•GAAP net income was $9.7 million, or $0.11 per share, based on 86.9 million diluted weighted-average common shares outstanding, compared to $4.0 million, or $0.05 per share, based on 80.0 million diluted weighted-average common shares outstanding, in 2024.

•Non-GAAP net income was $35.1 million, or $0.40 per share, based on 86.9 million diluted weighted-average common shares outstanding, compared to $37.2 million, or $0.47 per share, based on 80.0 million diluted weighted-average common shares outstanding, in 2024.

•Non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization, other income and expenses, fair value adjustments, stock-based compensation, transaction and transformation-related costs, restructuring costs as well as geographic reorganization expenses), a non-GAAP metric, was $53.8 million, compared to $52.5 million in 2024.

See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Information" below for a discussion of our non-GAAP measures.

Cash Flow and Other Metrics

•Cash provided by operating activities was $40.6 million for the year ended December 31, 2025, an increase of $10.4 million from $30.2 million for the year ended December 31, 2024.

•Cash and cash equivalents totaled $342.1 million as of December 31, 2025, compared to $334.7 million as of December 31, 2024.

•The Company repurchased 0.2 million shares of its common stock for $2.0 million during the fourth quarter of 2025 under its share repurchase program announced on October 23, 2025. As of December 31, 2025, the Company had $48.0 million remaining under its share repurchase authorization.

•Total headcount was 4,961 employees as of December 31, 2025, compared with 4,730 as of December 31, 2024.

Financial Outlook

First Quarter

•The Company expects revenues in the first quarter of 2026 to be in the range of $103.0 to $104.0 million.

•Non-GAAP EBITDA in the first quarter of 2026 is expected to be between $12.0 and $13.0 million.

•For the first quarter of 2026, we expect our basic share count to be in the 85.0-86.0 million range and diluted share count to be in the 87.0-88.0 million range.

Full Year

•The Company expects full year 2026 revenues to be in the range of $435.0 to $465.0 million. At the midpoint of $450.0 million, the Company expects the year-over-year growth rate for 2026 revenues would be 9.3%.

Grid Dynamics is not able, at this time, to provide GAAP targets for net income for the first quarter and full year of 2026 because of the difficulty of estimating certain items excluded from non-GAAP EBITDA that cannot be reasonably predicted, such as interest, taxes, other income/(expense), fair-value adjustments, geographic reorganization expenses, and charges related to stock-based compensation expense. The effect of these excluded items may be significant.

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Conference Call and Webcast

Grid Dynamics will host a conference call at 4:30 p.m. ET on Thursday, March 5, 2026 to discuss its fourth quarter and full year 2025 financial results. Investors and other interested parties can access a webcast of the video conference call on the Investor Relations section of the Company's website at https://www.griddynamics.com/investors.

A replay will also be available after the call at https://www.griddynamics.com/investors with the passcode $Q4@2025.

About Grid Dynamics

Grid Dynamics (NASDAQ: GDYN) is a leading provider of technology consulting, platform and product engineering, AI, and digital engagement services. Fusing technical vision with business acumen, we solve the most pressing technical challenges and enable positive business outcomes for enterprise companies undergoing business transformation. A key differentiator for Grid Dynamics is our 9 years of experience and leadership in enterprise AI, supported by profound expertise and ongoing investment in data and ML platform engineering, cloud platform and product engineering, IoT and edge computing, and digital engagement services. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the Americas, Europe, and India. Follow us on LinkedIn.

Non-GAAP Financial Measures

To supplement the financial measures presented in Grid Dynamics press release in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also presents non-GAAP measures of financial performance.

A "non-GAAP financial measure" refers to a numerical measure of Grid Dynamics historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Grid Dynamics provides certain non-GAAP measures as additional information relating to its operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity and profitability.

Grid Dynamics has included these non-GAAP financial measures because they are financial measures used by Grid Dynamics' management to evaluate Grid Dynamics' core operating performance and trends, to make strategic decisions regarding the allocation of capital and new investments and are among the factors analyzed in making performance-based compensation decisions for key personnel.

Grid Dynamics believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of core operations or do not require a cash outlay, such as stock-based compensation expense. Grid Dynamics believes these non-GAAP measures provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitate period to period comparisons of operations. Grid Dynamics believes these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. Grid Dynamics compensates for these limitations by providing investors and other users of its financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. Grid Dynamics encourages investors and others to review its financial information in its entirety, not to rely on any single financial measure, and to view its non-GAAP measures in conjunction with GAAP financial measures. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures attached to this release.