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Nagarro releases Q3 2025 results with 9.4% YoY revenue growth in constant currency and 27.2% YoY increase in Adjusted EBITDA; announces share redemption and buyback
BusinessLine· 2025-11-15 07:05
Core Insights - Nagarro reported a revenue increase of 4.8% YoY in Q3 2025, reaching €254.6 million, with a gross profit of €84.2 million and a gross margin of 33.1% [1][2] Q3 2025 Financial Performance - Revenue for Q3 2025 was €254.6 million, up from €242.9 million in Q3 2024, with organic growth of 3.7% in Euro terms [1] - Adjusted EBITDA rose to €44.0 million (17.3% of revenue) from €34.6 million (14.3% of revenue) in Q3 2024 [2] - Net profit increased to €21.4 million in Q3 2025 from €12.7 million in Q3 2024 [2] - The number of clients generating over €1 million in annual revenue slightly increased from 186 to 187 [2] Nine-Month Financial Results - Revenue for the first nine months of 2025 reached €753.4 million, a 3.9% YoY increase from €725.4 million in 9M 2024 [6] - Adjusted EBITDA for 9M 2025 declined to €104.8 million (13.9% of revenue) from €109.3 million (15.1% of revenue) in 9M 2024 due to currency revaluation losses [8] - Net profit for 9M 2025 was €41.0 million, slightly down from €41.3 million in 9M 2024 [8] Operational Efficiency - The company’s headcount increased by 233 professionals during Q3 2025 [3] - Operating cash inflow for 9M 2025 rose to €77.1 million from €64.9 million in 9M 2024 [9] - Days of sales outstanding improved from 88 days to 85 days [9] Shareholder Actions - Nagarro resolved to redeem 853,688 treasury shares and buy back up to 450,000 shares with a purchase limit of €20 million [5] Guidance and Future Outlook - The company maintained its previous guidance for the full year 2025 [4]