Grid Dynamics reported record revenues driven by AI demand, with strong sequential and year-over-year growth. The company is focusing on improving profitability and margins, and has announced a new share repurchase program, signaling confidence in its long-term prospects.
Record revenues of $104.2 million in Q3 2025, up 19.1% year-over-year.
positiveAI revenue grew 10% sequentially and contributed over 25% of organic revenue.
positiveBoard authorized a $50.0 million share repurchase program, reflecting confidence in long-term prospects.
positiveNine-month operating cash flow increased to $30.7 million from $23.1 million in the prior year.
positiveGAAP gross profit margin decreased to 33.3% in Q3 2025 from 37.4% in Q3 2024.
attentionNon-GAAP gross profit margin decreased to 33.8% in Q3 2025 from 38.0% in Q3 2024.
attentionGAAP net income decreased to $1.2 million in Q3 2025 from $4.3 million in Q3 2024.
negativeNon-GAAP net income decreased to $8.2 million in Q3 2025 from $10.8 million in Q3 2024.
negativeNon-GAAP EBITDA decreased to $12.7 million in Q3 2025 from $14.8 million in Q3 2024.
negativeGeneral and administrative expenses increased to $21.9 million from $19.3 million year-over-year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Retail | N/A | — | — | — |
Technology, Media and Telecom | N/A | — | — | — |
Finance | N/A | — | — | — |
CPG/Manufacturing | N/A | — | — | — |
Healthcare and Pharma | N/A | — | — | — |
Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Our third quarter revenue of $104.2 million was another all time high, fueled by AI demand.
AI revenue grew 10% on a sequential basis and contributed to over 25% of our third quarter organic revenue.
We expect to improve our margins by at least 300 basis points over the next 12 months.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.