Grid Dynamics (GDYN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $100.4 million, up 25.8% year-over-year, driven by strong performance in Finance and Retail, and supported by recent acquisitions.

• Non-GAAP EBITDA was $14.6 million (14.5% margin), up from $10.3 million in Q1 2024, and non-GAAP net income was $10.0 million; GAAP net income was $2.9 million ($0.03/share).

• Employee headcount grew to 4,926, reflecting expansion and acquisitions.

• Strategic acquisitions of JUXT (UK) and Mobile Computing (Argentina) expanded capabilities and contributed $12.6 million in Q1 revenue.

• AI initiatives and digital transformation projects are moving to enterprise scale, supporting growth and diversification.

Financial highlights

• Q1 2025 gross profit was $37.0 million (GAAP) and $37.6 million (non-GAAP), with gross margins of 36.8% and 37.4%, respectively.

• Cash and equivalents stood at $325.5 million as of March 31, 2025.

• Diluted GAAP EPS was $0.03, non-GAAP diluted EPS was $0.11.

• Operating cash flow improved to $9.4 million, up $6.1 million year-over-year.

• No outstanding debt under the $30 million revolving credit facility.

Outlook and guidance

• Q2 2025 revenue expected between $100 million and $102 million; non-GAAP EBITDA guidance of $12.5 million–$13.5 million.

• Full-year 2025 revenue outlook maintained at $415 million–$435 million, implying 18.4%–24.1% year-over-year growth.

• Second half of 2025 expected to be seasonally stronger, driven by ramp-up of recent deals and new contracts.

• Remaining $2.2 million in performance obligations expected to be recognized as revenue in the next nine months.