Companies /Technology

Grid Dynamics Holdings Inc - Class A

NASDAQ: GDYN Information Technology Services
$7.83
▼ $0.02 (−0.25%) today
Markets closed · 10:31pm ET

Q4 2025 Earnings

Reported Mar 5, 2026, 4:08pm ET · SEC source
$0.10
Beat +9.41%
EPS · est. $0.09
$106.2M
Beat +0.22%
Revenue · est. $105.9M
−16.6%
Trailing market
GDYN vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Mar 5Mar 6report 4:08pm ETearnings−1.4%−3.0%
−4%0+4%Mar 5Mar 6earnings−1.4%−3.0%
GDYN −3.0%S&P 500 −1.4%
−4%0+4%Mar 5Mar 6report 4:08pm ETearnings−1.5%−3.0%
−4%0+4%Mar 5Mar 6earnings−1.5%−3.0%
GDYN −3.0%NASDAQ −1.5%
−12%−6%0+6%Mar 4Mar 13report 4:08pm ETearnings−2.7%−7.3%
−12%−6%0+6%Mar 4Mar 13earnings−2.7%−7.3%
GDYN −7.3%S&P 500 −2.7%
−12%−6%0+6%Mar 4Mar 13report 4:08pm ETearnings−2.5%−7.3%
−12%−6%0+6%Mar 4Mar 13earnings−2.5%−7.3%
GDYN −7.3%NASDAQ −2.5%
−6.99%
Day of report
−2.11%
Next session
−4.81%
One week
−16.09%
30 days

S&P 500 over the same 30 days: +0.54%.

Did GDYN Beat Earnings? Q4 2025 Results

Grid Dynamics delivered a modest but clean beat in Q4 2025, with revenue of $106.15 million edging past the $105.92 million consensus by 0.22% and non-GAAP diluted EPS of $0.10 clearing the $0.09 estimate by 9.41%, as the company's Technology, Media and Telecom vertical surged 27.5% year-over-year to anchor the quarter's 5.9% top-line growth. AI-related work was the clearest engine behind the results, accounting for 25% of Q4 revenue and exceeding $90 million for full-year 2025, reflecting 30% annual growth driven by engagements with clients that include leading global technology and payment companies. The positive headline, however, was tempered by notable margin compression, with GAAP gross margin contracting to 34.0% from 36.9% a year ago and GAAP net income falling sharply to $306,000 from $4.52 million, a pressure analysts have flagged as a concern given the thin 2.3% net margin. Looking ahead, management guided Q1 2026 revenue of $103 to $104 million and full-year 2026 revenue of $435 to $465 million, implying roughly 9.3% growth at the midpoint, though the near-term sequential step-down suggests near-term caution remains warranted.

Key Takeaways
  • AI revenue represented 25% of Q4 2025 revenues and exceeded $90 million for full year 2025 with 30% YoY growth
  • Technology, Media and Telecom vertical was key growth driver with 27.5% YoY and 5.3% sequential revenue increase
  • Strong demand from top two technology customers drove TMT vertical growth
  • Robust demand from key fintech and banking customers drove Finance vertical performance

“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.”

Grid Dynamics CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2026, Grid Dynamics expects revenues of $103.0 to $104.0 million and non-GAAP EBITDA of $12.0 to $13.0 million, with basic share count of 85.0-86.0 million and diluted share count of 87.0-88.0 million. For full-year 2026, the company expects revenues of $435.0 to $465.0 million, representing 9.3% year-over-year growth at the midpoint of $450.0 million. The company anticipates continued AI revenue growth momentum in 2026.

GDYN YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$30.0M$60.0M$90.0M$100.3M$106.2MRevenue$37.0M$36.1MGross Profit$5.5M$506,000Operating Income$4.5M$306,000Net Income
$0$30.0M$60.0M$90.0MRevenueGross ProfitOperating IncomeNet Income

GDYN Revenue by Segment

Technology, Media and Telecom$30.1M+27.5%
Retail$30.5M
Finance$24.3M
CPG/Manufacturing$10.8M−4.3%
Other$7.7M
Healthcare and Pharma$2.8M

Figures from SEC filings and company reports. Not investment advice.