Nagarro (NA9) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached EUR 252 million, with adjusted EBITDA of EUR 30.5 million and a margin of 12.1%.

• Underlying business performance improved year-over-year, but FX losses on internal loans and deposits masked structural gains.

• Strategic initiatives in Japan, German Mittelstand, and Edge AI/IoT are gaining momentum, with increased clarity around AI driving design activity.

• Acquisition of Notion Edge France expanded SAP Customer Experience capabilities and European presence.

• Board strengthened with three new members and ongoing search for a new CFO.

Financial highlights

• Q2 2025 revenue: EUR 252 million, up 3.2% year-over-year; H1 revenue: EUR 498.9 million, up 3.4%.

• Adjusted EBITDA for Q2: EUR 30.5 million; H1: EUR 60.8 million (12.2% margin), impacted by EUR 18.0 million FX loss.

• Gross margin reached 33.2% in Q2, up from 30.0% year-over-year.

• Net leverage ratio at 1.8x; cash balance EUR 121.8 million; net liabilities EUR 245.8 million.

• Net profit for H1 2025 was EUR 19.6 million, down from EUR 28.6 million in H1 2024.

Outlook and guidance

• 2025 revenue expected near lower end of EUR 1,020–1,080 million guidance.

• Gross margin target of 30% expected to be met.

• Adjusted EBITDA margin guidance revised to 13.5–14.5% due to currency impacts.

• Medium-term outlook for digital specialists remains strong, with AI and digital transformation as growth drivers.

• Margin outlook positive if currency remains stable in H2.