Overview

* Grid Dynamics ( GDYN ) Q3 revenue grows 19.1% yr/yr, beating analysts' expectations

* Adjusted EPS for Q3 comes in line with analysts' estimates

* Company announces $50 mln share repurchase program

Outlook

* Company expects Q4 2025 revenue between $105.0 mln and $107.0 mln

* Grid Dynamics ( GDYN ) sees full-year 2025 revenue at $410.7 mln to $412.7 mln

* Company plans to improve margins by at least 300 basis points over 12 months

Result Drivers

* TMT GROWTH - TMT vertical surpassed Finance, driven by higher demand from technology customers, accounting for 27.4% of revenue

* AI DEMAND - AI revenue grew 10% sequentially, contributing over 25% of organic revenue

* FINTECH DEMAND - Finance vertical growth driven by fintech demand and 2024 acquisitions, contributing 24.6% of total revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $104.17 $103.60

Revenue mln mln (5

Analysts

)

Q3 Meet $0.09 $0.09 (5

Adjusted Analysts

EPS )

Q3 EPS $0.01

Q3 Beat $8.15 $7.11

Adjusted mln mln (4

Net Analysts

Income )

Q3 Beat $12.70 $12.40

Adjusted mln mln (5

EBITDA Analysts

)

Q3 $35.24

Adjusted mln

Gross

Profit

Q3 Gross $34.71

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Grid Dynamics Holdings Inc ( GDYN ) is $13.00, about 37.7% above its October 29 closing price of $8.10

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)