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- **Record Revenue Growth**: Q3 $104.2M revenue, 19.1% YoY, fueled by 10% sequential AI growth and 25% AI contribution to organic revenue.
- **Share Buyback Signal**: $50M buyback (15% of cash) reflects confidence in undervalued shares and long-term growth.
- **Margin Expansion Ambition**: 300+ basis points improvement via AI-first initiatives, cost optimization, and higher-margin projects.
- **Strong Pipeline**: Multi-quarter engagements extending into 2026, with TMT and Finance verticals leading growth.

**【CEO Summary Section】**
- Q3 revenue reached $104.2 million, an all-time high, driven by 10% sequential growth in AI-related projects, which now account for 25% of organic revenue.
- Announced a $50 million share buyback program, reflecting confidence in long-term prospects and undervalued shares.
- Strong pipeline of new large enterprise logos, with multi-quarter engagements extending into 2026.
- Committed to improving margins by 300 basis points over 12 months through AI-first initiatives, cost optimization, and higher-margin projects.

**【CFO Financial Commentary】**
- Q3 non-GAAP EBITDA of $12.7 million, within the $12-13 million guidance range, despite $0.6 million FX-related headwinds.
- Year-over-year revenue growth of 19.1%, with TMT and Finance verticals leading at 18.2% and 81% growth, respectively.
- Q4 guidance: $105-107 million revenue, positioning 2025 full-year revenue at $410.7-412.7 million (17.1-17.7% YoY growth).
- Cash balance of $338.6 million, with M&A and organic growth as top capital allocation priorities.

**【Q&A Key Highlights】**
- **Billable Headcount Growth**: Added 5x more engineers in Q3 than Q2, with similar additions expected in Q4, despite seasonal trends.
- **Agentic AI Adoption**: Clients seeing 70% reduction in bug triage time and 10% productivity gains through AI-driven solutions.
- **Partnership Expansion**: 18% of revenue from partnerships, targeting 25-30% long-term through hyperscalers and ISVs.
- **Margin Expansion**: 300+ basis points improvement driven by pricing, operational efficiency, and technology investments, achievable even under constrained growth scenarios.

Grid Dynamics Holdings, Inc. (GDYN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GDYN

GDYN fundamentals

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