Grid Dynamics Holdings (GDYN)
NASDAQ:GDYN
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Grid Dynamics Holdings
(NASDAQ:GDYN)
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Rating:63Neutral
Price Target:
$5.50
▼(-0.36% Downside)
Action:ReiteratedDate:03/07/26
The score is primarily supported by strong financial stability (low leverage, positive free cash flow) and constructive 2026 guidance tied to AI momentum. These positives are tempered by weak technical trend signals and a rich valuation, while margin pressure and higher customer concentration add execution risk.
Positive Factors
AI revenue momentum
AI-related services now represent a material and growing revenue stream, supporting multi-quarter engagements and higher-value work. Durable demand for AI/ML implementations improves revenue visibility, fosters deeper account penetration, and underpins management's margin expansion plans over the medium term.
Negative Factors
Margin compression & FX headwinds
Sustained margin contraction and currency-driven profit hits reduce cash available for reinvestment and slow progress toward targeted margin expansion. Persistent FX volatility and acquisition mix effects can erode operating leverage and make multi-year profitability targets harder to achieve without structural cost or pricing changes.
Read all positive and negative factors
Positive Factors
Negative Factors
AI revenue momentum
AI-related services now represent a material and growing revenue stream, supporting multi-quarter engagements and higher-value work. Durable demand for AI/ML implementations improves revenue visibility, fosters deeper account penetration, and underpins management's margin expansion plans over the medium term.
Read all positive factors
Grid Dynamics Holdings (GDYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$450.67M
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)79.0
Beta (1Y)1.18
Revenue Growth23.63%
EPS Growth427.13%
CountryUS
Employees4,926
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding85,353,770
10 Day Avg. Volume1,170,231
30 Day Avg. Volume1,594,933
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.41
Price to Sales (P/S)1.85
P/FCF Ratio30.21
Enterprise Value/Market Cap0.33
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit1.05
Enterprise Value/Ebitda6.91
Forecast
1Y Price Target
$10.50Price Target Upside90.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.46
Revenue Forecast (FY)$445.20M
Grid Dynamics Holdings Business Overview & Revenue Model
Company Description
Grid Dynamics Holdings, Inc., together with its subsidiaries, provides enterprise-level digital transformation services in the areas of search, analytics, and release automation for Fortune 1000 corporations in North America, Europe, and internati...
How the Company Makes Money
Grid Dynamics primarily makes money by providing professional services to enterprise customers, billing for teams and projects that design, build, modernize, and operate software and data platforms. Its revenue is largely derived from services eng...
Grid Dynamics Holdings Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlights strong momentum in AI-driven revenue, record annual revenue, expanding platform/IP commercialization, notable client outcomes, solid cash balance, and bullish full-year 2026 revenue guidance. Offsetting these positives are margin compression and YoY profitability pressure largely due to FX and acquisition mix, weakness in retail and certain manufacturing customers, and increased customer concentration. Management emphasized platform-led, outcome-based growth and expects margin expansion in 2026 driven by AI efficiencies, geographic optimization, and outcome-based contracts.Positive Updates
Strengthened Partnerships and Partner-Influenced Revenue
Partner-influenced revenue exceeded 19% of total revenue in 2025; signed strategic collaboration with AWS for data foundations in AI and continued NVIDIA Omniverse collaboration.
Negative Updates
Gross Margin and EBITDA Margin Compression Year-over-Year
GAAP gross margin declined YoY to 34.0% in Q4 (from 36.9% year-ago); non-GAAP gross margin 34.5% vs 37.5% year-ago. Non-GAAP EBITDA margin fell to 12.9% in Q4 from 15.6% a year earlier—driven by FX headwinds and acquisition-related mix (JUXT).
Read all updates
Q4-2025 Updates
Positive
Negative
Strengthened Partnerships and Partner-Influenced Revenue
Partner-influenced revenue exceeded 19% of total revenue in 2025; signed strategic collaboration with AWS for data foundations in AI and continued NVIDIA Omniverse collaboration.
Read all positive updates
Company Guidance
Grid Dynamics guided Q1 2026 revenue of $103–$104 million and non‑GAAP EBITDA of $12–$13 million (basic shares 85–86M; diluted 87–88M), noting seasonality and fewer working days, and gave full‑year 2026 revenue guidance of $435–$465 million while targeting margin expansion (management has previously cited ~300 bps improvement year‑over‑year). These targets build on Q4 2025 results of $106.2 million revenue and $13.7 million non‑GAAP EBITDA (12.9% margin), full‑year 2025 revenue of $411.8 million (+17.5% YoY) and $53.8 million non‑GAAP EBITDA, with cash of $341.1 million, headcount 4,961, AI revenue >$90 million in 2025 (≈25% of Q4 revenue; +30% YoY), and an acknowledged ~$1.5 million FY EBITDA FX headwind.Grid Dynamics Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 411.83M | 350.57M | 312.91M | 310.48M | 211.28M |
| Gross Profit | 142.35M | 127.00M | 113.15M | 120.59M | 87.73M |
| EBITDA | 27.12M | 16.63M | 6.54M | -11.36M | 5.10M |
| Net Income | 9.67M | 4.04M | -1.76M | -29.21M | -7.70M |
Balance Sheet | |||||
| Total Assets | 612.89M | 592.19M | 435.17M | 411.15M | 256.72M |
| Cash, Cash Equivalents and Short-Term Investments | 342.06M | 334.65M | 257.23M | 256.73M | 144.36M |
| Total Debt | 17.04M | 12.63M | 11.00M | 8.14M | 0.00 |
| Total Liabilities | 70.82M | 74.36M | 52.26M | 48.10M | 29.67M |
| Stockholders Equity | 542.07M | 517.83M | 382.91M | 363.04M | 227.05M |
Cash Flow | |||||
| Free Cash Flow | 25.27M | 18.43M | 33.22M | 25.58M | 13.26M |
| Operating Cash Flow | 40.60M | 30.20M | 41.09M | 31.65M | 17.97M |
| Investing Cash Flow | -15.14M | -51.30M | -25.95M | -16.32M | -35.37M |
| Financing Cash Flow | -19.94M | 101.16M | -16.32M | 97.76M | 49.13M |
Grid Dynamics Holdings Technical Analysis
Negative
5.52
Price Trends
6.42
Negative
7.76
Negative
8.27
Negative
Market Momentum
-0.32
Negative
37.94
Neutral
23.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDYN, the sentiment is Negative. The current price of 5.52 is below the 20-day moving average (MA) of 5.75, below the 50-day MA of 6.42, and below the 200-day MA of 8.27, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDYN.
Grid Dynamics Holdings Risk Analysis
Grid Dynamics Holdings disclosed 55 risk factors in its most recent earnings report. Grid Dynamics Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grid Dynamics Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $6.46B | 30.32 | 10.27% | ― | 14.26% | -15.49% | |
63 Neutral | $450.67M | 78.96 | 1.82% | ― | 23.63% | 427.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.46B | 18.42 | 6.26% | ― | -4.86% | -25.15% | |
61 Neutral | $1.87B | 17.57 | 4.88% | ― | 5.56% | -42.38% | |
49 Neutral | $1.58B | -83.08 | -69.72% | ― | -6.95% | -53.69% | |
48 Neutral | $1.20B | -2.86 | -55.55% | ― | 1.84% | -27.74% |
* Technology Sector Average
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Grid Dynamics Holdings Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Grid Dynamics Updates Bylaws to Tighten Shareholder Nominations
Positive
Feb 27, 2026
On February 26, 2026, Grid Dynamics Holdings, Inc. announced that its board of directors adopted Amended and Restated By-Laws, effective immediately, to tighten procedures around shareholder nominations and proposals. The revisions increase disclo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.