Grid Dynamics (GDYN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $104.1 million, up 3.7% year-over-year and slightly above guidance, with AI revenue comprising 29.3% of total and growing nearly 60% year-over-year.

• The business is shifting toward AI-led transformation, with significant growth in technology and financial services, and diversification away from retail.

• Strategic partnerships with hyperscalers (Google Cloud, AWS, Azure) and NVIDIA are accelerating go-to-market and expanding addressable markets.

• Recent acquisitions and proprietary platforms have expanded AI and mobile capabilities, reducing client implementation times.

• Top five accounts are now outside retail, reflecting diversification into technology and financial services.

Financial highlights

• Q1 revenue grew 3.7% year-over-year to $104.1 million, above guidance, but down 1.9% sequentially.

• GAAP gross profit was $36.2 million (34.8% margin), down from $37.0 million (36.8%) a year ago; non-GAAP gross profit was $36.7 million (35.3% margin), down from $37.6 million (37.4%).

• Non-GAAP EBITDA was $12.5 million (12% of revenue), down from $14.6 million (14.5%) a year ago.

• GAAP net loss was $1.5 million ($0.02 per share), compared to net income of $2.9 million ($0.03 per share) a year ago.

• Cash and equivalents were $327.5 million at quarter end, down from $342.1 million in Q4 2025, with no debt outstanding.

Outlook and guidance

• Q2 2026 revenue expected between $106–$108 million; non-GAAP EBITDA guidance is $14–$15 million.

• Full-year 2026 revenue outlook maintained at $435–$465 million, representing up to 12.9% growth.

• Management expresses confidence in pipeline strength and margin expansion due to higher-margin AI and fixed-price projects.

• Cash and liquidity are expected to be sufficient for at least the next twelve months.