Education
About Us
Working with TipRanks
Follow Us
Grid Dynamics Holdings (GDYN)
NASDAQ:GDYN
Top Page
Grid Dynamics Holdings
(NASDAQ:GDYN)
Select Model
Select Model
Rating:73Outperform
Price Target:
$9.00
▲(14.65% Upside)
Grid Dynamics Holdings scores well due to its strong financial performance and positive earnings call sentiment, driven by an AI-focused growth strategy. However, the technical analysis indicates bearish trends, and the stock's high P/E ratio suggests overvaluation, which tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.
AI and Data Practice Growth
Rapid growth in AI and data segments positions the company as a leader in innovation, driving future revenue and competitive advantage.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, supporting investments in growth opportunities and strengthening the balance sheet.
Negative Factors
Operational Fluctuations
Operational volatility and rising capital expenditures could pressure margins and cash flows, impacting financial performance and strategic initiatives.
Retail Vertical Revenue Decline
Declining revenue in the retail sector may signal challenges in maintaining market share, affecting overall growth and profitability.
Decline in Customer Count
A reduction in customer count could indicate challenges in customer retention and acquisition, potentially impacting future revenue streams.
Grid Dynamics Holdings (GDYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$684.13M
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)38.8
Beta (1Y)1.41
Revenue Growth22.27%
EPS GrowthN/A
CountryUS
Employees4,926
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding84,669,950
10 Day Avg. Volume850,335
30 Day Avg. Volume1,168,519
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit4.79
Enterprise Value/Ebitda23.92
Forecast
1Y Price Target
$12.60Price Target Upside60.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Grid Dynamics Holdings Business Overview & Revenue Model
Company DescriptionGrid 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 MoneyGrid Dynamics generates revenue through a combination of service-based models, including project-based consulting fees, retainer contracts, and subscription services. Key revenue streams include custom software development, cloud migration services, data analytics solutions, and ongoing IT support. The company often engages in strategic partnerships with major technology firms, which help expand its service offerings and market reach. Additionally, its focus on high-demand sectors allows it to command premium pricing for specialized services, contributing significantly to its overall earnings.
Grid Dynamics Holdings Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Grid Dynamics demonstrated strong growth driven by its AI-first strategy and record-breaking revenue. However, challenges such as declines in the retail vertical, FX headwinds, and a decrease in customer count were noted. The sentiment leans more positive due to the significant achievements and strategic growth, especially in AI and partnerships.Q2-2025 Updates
Positive Updates
Record Revenue Achievement
Grid Dynamics reported a record second-quarter revenue of $101 million, marking an all-time high and a year-over-year growth of 21.7%.
AI and Data Practice Growth
AI and Data initiatives contributed to 23% of the company's overall organic growth, growing nearly 3x faster than the overall organic business.
Partnership Revenue Growth
Partnership-influenced revenues reached 17.9% of total revenue in Q2 2025, with increased traction particularly with Google.
Expansion in India
India emerged as a strategic hub for multi-agent, multi-modal platform engineering, contributing strongly to talent acquisition and upskilling efforts.
Negative Updates
Retail Vertical Revenue Decline
The retail vertical, although the largest, saw a sequential revenue decline of 6.2% primarily from home improvement customers.
FX Headwinds Impact
The second quarter faced negative impacts from FX fluctuations, with net costs approximately $1.4 million due to a weakened U.S. dollar.
Decline in Customer Count
The total number of customers decreased to 194 from 204 in the previous quarter, driven by efforts to rationalize the portfolio of nonstrategic customers.
Company Guidance
During the Grid Dynamics second quarter 2025 earnings call, the company reported record quarterly revenue of $101 million, marking a year-over-year growth of 21.7%. The AI and Data segment contributed significantly, representing 23% of the company's overall organic growth and growing nearly three times faster than the rest of the business. The company's partnership-influenced revenues reached 17.9%, with notable traction from hyperscalers, especially Google. The fiscal guidance for the third quarter projects revenues between $103 million to $105 million, maintaining an annual outlook of $415 million to $435 million. Grid Dynamics emphasized its strategic focus on AI-driven transformation, highlighting growth in engineering headcount, a strong pipeline of opportunities, and successful integration of recent acquisitions. The company ended the quarter with a total headcount of 5,013, and revenues from the top five and top ten customers were 37.5% and 57.3%, respectively.Grid Dynamics Holdings Financial Statement Overview
Summary
Grid Dynamics Holdings presents a strong financial position with impressive revenue growth, efficient cost management, and robust cash flow generation. The low leverage and high equity ratio enhance financial stability. However, operational fluctuations and increased capital expenditures may pose challenges going forward.Income Statement
Grid Dynamics Holdings has shown strong revenue growth, with a 24.1% increase from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin stands at 36.3% for TTM, indicating efficient cost management. Net profit margin improved significantly to 4.4% from a negative in prior years. The EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency. However, the volatility in EBIT over the years suggests some operational challenges.Balance Sheet
The company demonstrates a solid balance sheet with a debt-to-equity ratio of 0.03, showcasing minimal leverage and financial risk. Return on equity for the TTM is 3.2%, indicating decent profitability for its shareholders. The equity ratio of 87.4% suggests a strong reliance on equity financing, underscoring financial stability.Cash Flow
Grid Dynamics has improved its free cash flow by 82.5% from 2024 to TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 2.97, indicating robust cash conversion. The free cash flow to net income ratio stands at 1.98, further supporting its healthy cash flow position. Despite these strengths, capital expenditures have risen, which could pressure future cash flows.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 389.23M | 350.57M | 312.91M | 310.48M | 211.28M | 111.28M |
| Gross Profit | 141.28M | 127.00M | 113.15M | 120.59M | 87.73M | 41.62M |
| EBITDA | 28.30M | 16.63M | 7.69M | -10.81M | 5.10M | -12.54M |
| Net Income | 16.99M | 4.04M | -1.76M | -29.21M | -7.70M | -12.60M |
Balance Sheet | ||||||
| Total Assets | 608.91M | 592.19M | 435.17M | 411.15M | 256.72M | 167.13M |
| Cash, Cash Equivalents and Short-Term Investments | 336.88M | 334.65M | 257.23M | 256.73M | 144.36M | 112.75M |
| Total Debt | 15.28M | 12.63M | 11.00M | 8.14M | 0.00 | 0.00 |
| Total Liabilities | 76.69M | 74.36M | 52.26M | 48.10M | 29.67M | 15.41M |
| Stockholders Equity | 532.21M | 517.83M | 382.91M | 363.04M | 227.05M | 151.73M |
Cash Flow | ||||||
| Free Cash Flow | 33.64M | 18.43M | 33.22M | 25.58M | 13.26M | 3.68M |
| Operating Cash Flow | 50.41M | 30.20M | 41.09M | 31.65M | 17.97M | 5.93M |
| Investing Cash Flow | -55.11M | -51.30M | -25.95M | -16.32M | -35.37M | -18.34M |
| Financing Cash Flow | 76.38M | 101.16M | -16.32M | 97.76M | 49.13M | 82.97M |
Grid Dynamics Holdings Technical Analysis
Positive
7.85
Price Trends
7.90
Positive
9.32
Negative
13.29
Negative
Market Momentum
-0.05
Negative
50.37
Neutral
58.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDYN, the sentiment is Positive. The current price of 7.85 is below the 20-day moving average (MA) of 7.95, below the 50-day MA of 7.90, and below the 200-day MA of 13.29, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDYN.
Grid Dynamics Holdings Risk Analysis
Grid Dynamics Holdings disclosed 56 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.63B | 23.76 | 5.66% | ― | 8.66% | -35.78% | |
73 Outperform | $684.13M | 38.77 | 3.69% | ― | 22.27% | ― | |
68 Neutral | $8.71B | 22.35 | 11.36% | ― | 9.73% | -0.29% | |
68 Neutral | $2.12B | 15.02 | 7.25% | ― | -6.31% | -23.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $2.51B | ― | -40.94% | ― | 14.34% | -13.27% | |
44 Neutral | $3.09B | ― | -222.48% | ― | 3.46% | -74.21% |
* Technology Sector Average
GDYN
Grid Dynamics Holdings
7.85
-7.62
-49.26%
EPAM
Epam Systems
156.73
-34.25
-17.93%
ASGN
ASGN
44.50
-49.37
-52.59%
GLOB
Globant SA
59.91
-159.14
-72.65%
AI
C3ai
17.95
-7.05
-28.20%
BBAI
BigBearai Holdings
6.78
5.15
315.95%
Grid Dynamics Holdings Corporate Events
Grid Dynamics’ Earnings Call: AI Growth and Challenges
Aug 2, 2025
Grid Dynamics Holdings, Inc. recently held its earnings call, where the sentiment was largely positive, reflecting strong performance in AI and data-driven growth. The company has successfully leveraged acquisitions and expanded partnerships, although it faces challenges in the retail sector, headcount management, and macroeconomic uncertainties.
Grid Dynamics Achieves Record Q2 2025 Revenues
Aug 1, 2025
Grid Dynamics Holdings, Inc., a leader in enterprise-level AI and digital transformation, offers technology consulting and engineering services across various industries, with a strong focus on AI-first strategies.
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.