Grid Dynamics(US:GDYN)2025-10-30 20:08Financial Performance - Third quarter 2025 revenues reached $104.2 million, reflecting a sequential growth of 3.0% and a year-over-year growth of 19.1%[2] - Revenues for Q3 2025 reached $104,163 thousand, a 19.0% increase from $87,435 thousand in Q3 2024[28] - Gross profit for Q3 2025 was $34,711 thousand, compared to $32,729 thousand in Q3 2024, reflecting a 6.0% increase[28] - Net income for Q3 2025 was $1,177 thousand, down from $4,282 thousand in Q3 2024, indicating a decline of 72.5%[28] - Non-GAAP net income for Q3 2025 was $8,150 thousand, compared to $10,828 thousand in Q3 2024, a decrease of 24.7%[34] - GAAP net income for the third quarter was $1.2 million, or $0.01 per share, compared to $4.3 million, or $0.05 per share, in the same quarter of 2024[8] - Non-GAAP EBITDA for the third quarter was $12.7 million, down from $14.8 million in the third quarter of 2024[9] - The company reported a GAAP diluted EPS of $0.01 for Q3 2025, down from $0.05 in Q3 2024[34] Revenue Breakdown - The Retail vertical contributed 27.8% of total revenues, while the Technology, Media and Telecom (TMT) vertical accounted for 27.4%, marking a 13.5% sequential increase and an 18.2% year-over-year increase[3] - AI revenue grew by 10% sequentially, contributing over 25% of the third quarter's organic revenue[4] - Revenue from the Finance vertical increased significantly to $25,623 thousand in Q3 2025, up 80.5% from $14,158 thousand in Q3 2024[37] Cash Flow and Assets - Cash provided by operating activities for the nine months ended September 30, 2025, was $30.7 million, compared to $23.1 million for the same period in 2024[15] - Cash and cash equivalents stood at $338,553 thousand as of September 30, 2025, slightly up from $334,655 thousand at the end of 2024[30] - Total current assets increased to $440,673 thousand as of September 30, 2025, up from $423,304 thousand at the end of 2024[30] - Total assets grew to $613,169 thousand as of September 30, 2025, compared to $592,192 thousand at the end of 2024[30] Future Outlook - The company expects full-year 2025 revenues to be between $410.7 million and $412.7 million, representing a year-over-year growth of 17.1% to 17.7%[11] - The company anticipates a net-billable engineer increase similar to the third quarter for the fourth quarter[4] - A $50.0 million share repurchase program has been authorized, representing approximately 15% of the company's cash[7] - The company aims to improve its margins by at least 300 basis points over the next 12 months through various operational initiatives[6] Operating Expenses - Operating expenses for Q3 2025 totaled $34,952 thousand, an increase from $30,593 thousand in Q3 2024, reflecting a rise of 14.4%[28]