Grid Dynamics Holdings (GDYN) AI Stock Analysis

• Market Cap: $693.41M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 50.5
• Beta (1Y): 1.28
• Revenue Growth: 23.63%
• EPS Growth: 427.13%
• Country: US
• Employees: 4,926
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.09
• Shares Outstanding: 84,769,060
• 10 Day Avg. Volume: 1,402,865
• 30 Day Avg. Volume: 1,220,487
• PEG Ratio: -1.32
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 4.91
• P/FCF Ratio: 93.47
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 16.40
• 1Y Price Target: $12.00
• Price Target Upside: 48.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): $415.11M

• Rating: 69 Neutral
• Price Target: $9.00 ▲(11.11% Upside)

Grid Dynamics Holdings has a solid financial foundation with strong revenue growth and strategic initiatives for future growth. However, profitability and valuation concerns, along with technical indicators suggesting potential short-term weakness, weigh on the overall score. The positive outlook from the earnings call, driven by AI demand and margin expansion plans, provides a counterbalance to these challenges.

Positive Factors

Revenue Growth

Sustained revenue growth driven by AI demand reflects strong market positioning and increasing adoption of services, supporting long-term expansion.

Cash Generation

Robust cash generation enhances financial flexibility, allowing for reinvestment in growth initiatives and potential shareholder returns.

AI-Centric Strategy

The focus on AI-driven solutions positions the company at the forefront of technological innovation, catering to high-demand sectors and driving future growth.

Negative Factors

Decline in Retail Revenue

A decline in retail revenue, the largest segment, indicates potential challenges in maintaining growth across key sectors, impacting overall performance.

Currency Fluctuations

Currency fluctuations can erode profitability and create unpredictability in earnings, posing a risk to financial stability and margin sustainability.

Decrease in Customer Count

A reduction in customer count suggests challenges in client retention and acquisition, potentially limiting future revenue growth and market expansion.

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 internationally. It works in collaboration with its clients on digital transformation initiatives that cover strategy consulting, early prototypes, and enterprise-scale delivery of new digital platforms. The company offers technical consulting, software design, development, testing, and internet service operations services. It serves customers that operate in the retail, technology and telecommunications, media, consumer packaged goods/manufacturing, financial services, and other sectors. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.

How the Company Makes Money

Grid Dynamics generates revenue through a combination of consulting services, project-based engagements, and long-term contracts that focus on digital transformation initiatives. The company typically charges clients on a time-and-materials basis or fixed-price contracts, depending on the nature of the project. Key revenue streams include software development, cloud migration services, data analytics, and machine learning implementations. Additionally, Grid Dynamics has formed strategic partnerships with major cloud providers like Google Cloud, Microsoft Azure, and Amazon Web Services, which not only enhance its service offerings but also drive customer acquisition and retention, contributing significantly to its earnings.

Grid Dynamics Holdings Financial Statement Overview

Summary

Grid Dynamics Holdings shows strong revenue growth and a stable balance sheet, with a low debt-to-equity ratio indicating financial stability. However, profitability is a concern with a low net profit margin and negative EBIT margin. Cash flow is robust but declining, highlighting the need for improved free cash flow generation.

Income Statement

Grid Dynamics Holdings shows a positive revenue growth rate of 4.3% TTM, indicating a steady upward trajectory. The gross profit margin is healthy at 35.3%, reflecting efficient cost management. However, the net profit margin is relatively low at 3.4%, and the EBIT margin is slightly negative, suggesting challenges in operational efficiency. Overall, the company is growing but needs to improve profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.025, indicating minimal leverage and financial stability. The return on equity is modest at 2.6%, suggesting room for improvement in generating returns for shareholders. The equity ratio is strong, showcasing a solid foundation of equity financing.

Cash Flow

Operating cash flow is robust, covering net income comfortably with a ratio of 0.65. However, the free cash flow growth rate is negative at -29.9%, indicating a decline in cash available for reinvestment. The free cash flow to net income ratio is healthy at 0.62, but the company needs to address the declining free cash flow trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	405.95M	350.57M	312.91M	310.48M	211.28M	111.28M
Gross Profit	143.26M	127.00M	113.15M	120.59M	87.73M	41.62M
EBITDA	20.54M	16.63M	6.54M	-11.36M	5.10M	-12.78M
Net Income	13.89M	4.04M	-1.76M	-29.21M	-7.70M	-12.60M
Balance Sheet
Total Assets	613.17M	592.19M	435.17M	411.15M	256.72M	167.13M
Cash, Cash Equivalents and Short-Term Investments	338.55M	334.65M	257.23M	256.73M	144.36M	112.75M
Total Debt	13.65M	12.63M	11.00M	8.14M	0.00	0.00
Total Liabilities	75.45M	74.36M	52.26M	48.10M	29.67M	15.41M
Stockholders Equity	537.72M	517.83M	382.91M	363.04M	227.05M	151.72M
Cash Flow
Free Cash Flow	16.54M	18.43M	33.22M	25.58M	13.26M	3.68M
Operating Cash Flow	27.38M	30.20M	41.09M	31.65M	17.97M	5.93M
Investing Cash Flow	-17.99M	-51.30M	-25.95M	-16.32M	-35.37M	-18.34M
Financing Cash Flow	107.28M	101.16M	-16.32M	97.76M	49.13M	82.97M

Grid Dynamics Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 8.1 is below the 20-day moving average (MA) of 8.40, above the 50-day MA of 8.08, and below the 200-day MA of 12.20, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 15.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDYN.

Grid Dynamics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAM	74 Outperform	$9.89B	27.32	10.21%	―	14.26%	-15.49%
GDYN	69 Neutral	$693.41M	50.53	2.96%	―	23.63%	427.13%
GLOB	67 Neutral	$2.69B	26.04	4.91%	―	5.56%	-42.38%
ASGN	62 Neutral	$1.83B	14.01	7.25%	―	-4.86%	-25.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AI	45 Neutral	$1.94B	―	-40.94%	―	14.34%	-13.27%
BBAI	44 Neutral	$2.65B	―	-111.83%	―	-6.95%	-53.69%

Grid Dynamics Holdings Corporate Events

Grid Dynamics Updates Director Compensation Policy

On November 7, 2025, Grid Dynamics Holdings announced changes to its Outside Director Compensation Policy, effective December 23, 2025. The new policy stipulates that annual retainer fees for directors will be paid in equity, specifically in restricted stock units, instead of cash. Directors have the option to elect cash payments during a specified period. This move aligns director compensation with company performance, potentially impacting the company’s governance and aligning stakeholder interests.

The most recent analyst rating on (GDYN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Grid Dynamics Holdings stock, see the GDYN Stock Forecast page.

Grid Dynamics Faces Investor Scrutiny as Executives Plan Major Stock Sales

Grid Dynamics Holdings, Inc. faces potential business risk associated with the recent adoption of Rule 10b5-1 trading arrangements by its key executives. On August 4, 2025, both CEO Leonard Livschitz and CFO Anil Doradla established plans to sell substantial amounts of company stock, which could signal insider confidence or raise concerns among investors about future company performance. These arrangements, intended to comply with the Securities Exchange Act, allow for sales until late 2026, potentially impacting stock price and investor sentiment. The market’s perception of these sales could influence the company’s financial stability and reputation.

Grid Dynamics Reports Record Revenue Amid Mixed Sentiment

Grid Dynamics Holdings, Inc. recently held its earnings call, revealing a mixed sentiment. While the company celebrated record revenue and strategic growth initiatives, it also faced challenges such as declining retail revenue and currency impacts. Positioned for growth with a strong pipeline and an AI-centric strategy, Grid Dynamics is navigating some headwinds in specific areas.

Grid Dynamics Reports Record Q3 2025 Revenues

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.

Grid Dynamics Announces $50M Share Repurchase Program

On October 23, 2025, Grid Dynamics Holdings announced a $50 million share repurchase program, reflecting confidence in its long-term business prospects. The company reported record third-quarter revenues of $104.2 million, driven by strong demand in AI and digital transformation services, with significant contributions from the retail and technology, media, and telecom sectors. The company plans to enhance profitability by improving margins and increasing its billable engineer count, positioning itself for continued growth into 2026.

The most recent analyst rating on (GDYN) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Grid Dynamics Holdings stock, see the GDYN Stock Forecast page.