Grid Dynamics Holdings, Inc. ( (GDYN) ) has released its Q3 earnings. Here is a breakdown of the information Grid Dynamics Holdings, Inc. presented to its investors.
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Grid Dynamics Holdings, Inc. is a prominent technology consulting firm specializing in AI and digital transformation services, catering to enterprise-level clients across various industries. In its third quarter of 2025, Grid Dynamics reported record revenues of $104.2 million, marking a 19.1% increase year-over-year and a 3.0% rise sequentially. The company also announced a $50 million share repurchase program, reflecting confidence in its long-term growth prospects.
Key financial highlights for the quarter include a GAAP gross profit of $34.7 million, representing 33.3% of revenues, and a non-GAAP net income of $8.2 million. The Technology, Media, and Telecom (TMT) vertical showed significant growth, surpassing the Finance sector for the first time since late 2024. AI-driven demand contributed to a 10% sequential growth in AI revenue, now accounting for over 25% of the company’s organic revenue.
Grid Dynamics is focusing on expanding profitability and margins, with plans to improve margins by at least 300 basis points over the next year. The company is leveraging its AI offerings and enhancing operational efficiencies in higher-margin geographies. Additionally, the firm increased its workforce significantly, adding five times more billable engineers in the third quarter compared to the second.
Looking ahead, Grid Dynamics anticipates continued revenue growth, expecting fourth-quarter revenues to range between $105 million and $107 million. The company remains optimistic about its 2026 prospects, aiming to build on its current momentum and establish a strong foundation for future expansion.