Grid Dynamics Holdings Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did GDYN Beat Earnings? Q3 2025 Results
Grid Dynamics delivered a mixed third quarter, posting revenue of $104.16 million, up 19.1% year-over-year and nudging ahead of the $103.70 million consensus by 0.44%, while earnings fell just short of expectations, with non-GAAP diluted EPS of $0.09 missing the $0.09 estimate by 3.74%. The profit shortfall traced back to margin compression tied to aggressive headcount expansion and acquisition integration costs, with GAAP net income sliding to $1.18 million from $4.28 million a year ago and non-GAAP EBITDA contracting to $12.70 million from $14.81 million. The top-line momentum was driven by surging AI demand, with AI-related services accounting for more than 25% of organic revenue and billable engineer additions running five times the pace of the prior quarter. To reinforce confidence in its trajectory, the board authorized a $50 million share repurchase program alongside a commitment to expand margins by at least 300 basis points over the next 12 months. For Q4, management guided revenue of $105 million to $107 million, with full-year 2025 revenue expected between $410.70 million and $412.70 million, representing growth of 17.1% to 17.7%.
- AI revenue grew 10% sequentially and contributed over 25% of Q3 organic revenue
- Technology, Media and Telecom vertical increased 13.5% sequentially driven by largest technology customers
- Finance vertical growth driven by sustained fintech demand and 2024 acquisitions
- Added five times more billable engineers in Q3 than in Q2
- Total headcount grew to 4,971 from 4,298 year-over-year
“Our third quarter revenue of $104.2 million was another all time high, fueled by AI demand. AI revenue grew 10% on a sequential basis and contributed to over 25% of our third quarter organic revenue. In the third quarter, we added five times more billable engineers than we added in the second quarter. For the fourth quarter, we expect net-billable engineers to increase at similar levels as in the third quarter. This is indeed a remarkable achievement given year-end seasonal trends.”
Grid Dynamics CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Grid Dynamics expects revenue in the range of $105.0 million to $107.0 million, with non-GAAP EBITDA between $13.0 million and $14.0 million. Basic share count is expected at 85–86 million and diluted at 86–87 million. Full-year 2025 revenue is expected at $410.7 million to $412.7 million, representing 17.1% to 17.7% year-over-year growth. The company expects to exit 2025 with a materially higher billable run rate, positioning well for 2026. Management targets at least 300 basis points of margin improvement over the next 12 months through efficiency initiatives, higher-margin geographies, AI pricing leverage, and portfolio rebalancing.
GDYN YoY Financials
GDYN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.