Grid Dynamics Reports Record $106.2M Q4 Revenue, 17.5% Full-Year Growth
Grid Dynamics delivered record Q4 revenue of $106.2 million and non-GAAP EBITDA of $13.7 million, with total 2025 revenue at $411.8 million, up 17.5% year-over-year. AI-related revenue grew 9% sequentially to comprise 25% of Q4 revenue and topped $90 million for the full year.
1. Q4 and Full-Year Financial Highlights
Grid Dynamics posted Q4 revenue of $106.2 million, slightly above midpoint guidance, marking a 1.9% sequential and 5.9% year-over-year increase. Non-GAAP EBITDA reached $13.7 million with a 12.9% margin, while full-year 2025 revenue rose 17.5% to $411.8 million and non-GAAP EBITDA totaled $53.8 million.
2. AI Revenue Growth and Platform Strategy
AI-related revenue represented 25% of Q4 sales, growing 9% sequentially and exceeding $90 million for the full year, up 30% year-over-year. Management highlighted expansion of platform assets—Rosetta, GAIN, MXP/XDB and Incarno—to shift toward higher-margin, outcome-based engagements and licensed work.
3. Guidance and Margin Expansion Outlook
For Q1 2026, Grid Dynamics guided revenue of $103–104 million and non-GAAP EBITDA of $12–13 million, noting seasonality and fewer working days. Full-year 2026 revenue is forecast at $435–465 million with a target of approximately 300 basis points of margin expansion supported by continued AI adoption and a strong sales pipeline.
4. Customer Concentration and Vertical Performance
Customer concentration increased, with the top five clients accounting for 39.7% of revenue and the top ten for 58.5%. In Q4, retail contributed 28.7% of revenue, TMT 28.3%, finance 22.9%, CPG and manufacturing 10.2%, and healthcare 2.6%, while FX headwinds shaved 22 basis points year-over-year.