Grid Dynamics Reports First Quarter 2025 Financial Results

Grid Dynamics Holdings, Inc., a leader in enterprise-level digital transformation, has released its financial results for the first quarter ended March 31, 2025. The company reported record revenues of $100.4 million and a GAAP net income of $2.9 million.

Financial Highlights

For the first quarter of 2025, Grid Dynamics achieved total revenues of $100.4 million, marking a 25.8% increase year-over-year. The GAAP gross profit was $37.0 million, or 36.8% of revenues, compared to $27.7 million, or 34.7% of revenues, in the first quarter of 2024. The company reported a GAAP net income of $2.9 million, or $0.03 per share, a significant improvement from a net loss of $3.9 million, or $0.05 per share, in the same period last year. Non-GAAP net income was $10.0 million, or $0.11 per diluted share, compared to $7.6 million, or $0.10 per diluted share, in the first quarter of 2024.

Business and Operational Highlights

Retail remained the largest vertical, accounting for 31.4% of total revenues. The Finance vertical showed the strongest performance with a 7.9% sequential increase and a 144.3% year-over-year increase, driven by demand from fintech, banking, and insurance customers. The Technology, Media, and Telecom (TMT) vertical contributed 23.5% of revenues, while the Consumer Packaged Goods (CPG) and Manufacturing vertical saw a 12.7% year-over-year increase. Healthcare and Pharma, and Other verticals remained flat compared to the fourth quarter of 2024.

Strategic Initiatives and Corporate Developments

Grid Dynamics signed several sizable deals across various industry verticals, including automotive, financial, and CPG. These engagements involve Agentic AI, cloud migration, and supply chain applications. The company is also strengthening its hyperscaler relationships and expanding its AI engagements across its customer base.

Management's Perspective

CEO Leonard Livschitz expressed delight over the record quarter of revenues and the highest-ever billable engineering headcount. He emphasized the company's focus on technology and engineering excellence, which continues to ensure success for clients. Livschitz also highlighted the robust partnership business and the strong pipeline of significant migration and modernization efforts.

Future Outlook

For the second quarter of 2025, Grid Dynamics expects revenues to be in the range of $100 million to $102 million, with Non-GAAP EBITDA between $12.5 million and $13.5 million. The company maintains its full-year 2025 revenue outlook of $415 to $435 million, representing growth of 18.4% to 24.1% year-over-year.

SEC Filing: GRID DYNAMICS HOLDINGS, INC. [ GDYN ] - 8-K - May. 01, 2025