Nagarro (NA9) Q1 2025 (Retail Investors) earnings summary

Executive summary

• Q1 2025 revenue was €247 million, up 3.6% year-over-year, with Adjusted EBITDA of €30.2 million and a 12.2% margin.

• FY 2024 revenue reached €972 million, a 6.6% increase year-over-year, with a gross margin of 30.4%.

• Net profit declined to €11.2 million from €16.6 million in Q1 2024, reflecting a challenging environment and client caution.

• Diversification across industries, clients, and regions remains a strategic focus to mitigate risk and support growth.

• Deferred revenue increased to €5.5 million, up from €2 million at year-end, indicating stronger underlying performance.

Financial highlights

• Q1 2025 Adjusted EBITDA margin was 12.2%, with gross margin at 30.6%.

• Top 5 clients contributed 15% of Q1 2025 revenue; cash balance at quarter-end was €162.2 million.

• Net debt stood at €206.9 million (net debt/Adjusted EBITDA ratio of 1.5x).

• Central Europe grew 8% year-over-year; North America remained steady.

• Days sales outstanding improved to 81 days from 88 days at year-end.

Outlook and guidance

• 2025 revenue guidance is €1,020–1,080 million with an adjusted EBITDA margin of 14.5–15.5%.

• Guidance excludes potential acquisitions, which are expected to be bolt-on.

• GenAI adoption is maturing, with increased market activity expected.