Grid Dynamics (GDYN) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $106.2M, up 1.9% sequentially and 5.9% year-over-year, and full-year revenue of $411.8M, up 17.5% from 2024.

• AI-related revenue exceeded $90M in 2025, growing 30% year-over-year and representing 25% of Q4 revenues.

• Non-GAAP EPS for Q4 2025 was $0.10, with non-GAAP net income of $8.7M.

• Strategic focus on AI platforms, vertical expertise, and outcome-based engagements is driving growth.

• Expanded global delivery footprint to 18 countries with 4,961 employees, a 4.9% increase year-over-year.

Financial highlights

• Q4 GAAP gross profit was $36.1M (34.0% margin); non-GAAP gross margin was 34.5%.

• Q4 non-GAAP EBITDA was $13.7M (12.9% margin), at the high end of guidance.

• Full-year non-GAAP EBITDA was $53.8M, up from $52.5M in 2024.

• Cash and equivalents at year-end totaled $341.1M–$342.1M.

• Non-GAAP net income margin for 2025 was 8.5%, compared to 10.6% in 2024.

Outlook and guidance

• Q1 2026 revenue guidance: $103M–$104M; non-GAAP EBITDA: $12M–$13M.

• Full-year 2026 revenue guidance: $435M–$465M, implying 9.3% growth at the midpoint.

• Margin expansion of 300 basis points targeted for 2026, driven by productivity and contract mix.

• Positioned for sustained multi-year growth in digital transformation, leveraging AI and cloud expertise.

• Market for AI IT consulting services projected to grow at a 24% CAGR through 2028.