Grid Dynamics Reports 5.9% Q4 Revenue Growth to $106.2M, Issues Lower Q1 Guidance
Grid Dynamics delivered Q4 CY2025 revenue of $106.2 million, representing 5.9% year-on-year growth, and adjusted EPS of $0.10. It guided Q1 CY2026 revenue at $103.5 million, 2.9% below analyst forecasts, and EBITDA at $12.5 million versus $13.68 million estimates.
1. Q4 Financial Performance
Grid Dynamics reported Q4 CY2025 revenue of $106.2 million, up 5.9% year on year, and adjusted EBITDA of $13.74 million, 3.8% above expectations, with adjusted EPS of $0.10 matching consensus estimates.
2. Q1 CY2026 Guidance
Management guided Q1 CY2026 revenue of $103.5 million, 2.9% below estimates, and EBITDA of $12.5 million, missing forecasts by roughly 8.6%, signaling potential pressure on near-term results.
3. Profitability Analysis
Operating margin held at 0.5%, consistent with the prior year’s quarter, while the 12.9% adjusted EBITDA margin reflects a stable cost structure; long-term margin expansion remains a key focus as revenue scales.
4. Outlook and Analyst Projections
Analysts project 10.1% revenue growth over the next 12 months supporting full-year EPS of $0.40, but the near-term guidance shortfall may prompt downward revisions and heightened investor scrutiny.