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Dec 31, 2025
Grid Dynamics Q4 2025 Earnings Report
Grid Dynamics Q4 2025 Earnings Report
Key Takeaways
Grid Dynamics achieved record fourth-quarter and full-year revenues for 2025, driven by strong performance in the Technology, Media, and Telecom (TMT) vertical and growing AI-related demand. While revenue grew 5.9% year-over-year in Q4, GAAP net income saw a decrease compared to the prior year due to higher cost of revenues and operating expenses.
Quarterly revenue reached a record $106.2 million, exceeding the midpoint of previous guidance.
AI-related services accounted for 25% of Q4 revenue and over $90 million for the full year.
The TMT vertical was the key growth driver in Q4, increasing 27.5% year-over-year.
Full-year 2025 revenue grew 17.5% to $411.8 million compared to $350.6 million in 2024.
Revenue by Segment
Forward Guidance
Grid Dynamics expects continued growth in 2026, targeting full-year revenue growth of approximately 9.3% at the midpoint.
Positive Outlook
- Q1 2026 revenue guidance of $103.0 million to $104.0 million.
- Full year 2026 revenue expected between $435.0 million and $465.0 million.
- Anticipated continued momentum in AI revenue growth.
- Strong AI-skilled workforce in place for the next growth phase.
- Substantial cash position of $342.1 million to support operations.
Challenges Ahead
- Q1 2026 Non-GAAP EBITDA expected to be slightly lower than Q4 2025 at $12.0M - $13.0M.
- Macroeconomic conditions and inflationary pressures remain a risk.
- Geopolitical climate, specifically the invasion of Ukraine, continues to impact operations.
- Revenues are highly dependent on a limited number of clients and industries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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