Grid Dynamics Culture Grid Dynamics Investor presentation Nasdaq: GDYN | Q3 2025 NASDAQ: GDYN © 2024 Grid Dynamics Holdings, Inc. All rights reserved. Grid Dynamics / Q4 and Full Year 2024 Disclaimer Forward-looking statements This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results of Grid Dy ...

Grid Dynamics (GDYN) is a Zacks Rank #5 (Strong Sell) and will report earnings on October 30, 2025 after the markets close. despite the company recently posted a solid beat and the stock has sold off as a result.  This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.Description                                              Grid Dynamics Holdings, Inc. engages in the provision of technology consulting, platform and product engineering, and advanced analytics s ...

Market Overview - The stock market experienced high volatility in Q2 2025, with a 7% drop in stock prices from April 2 to April 7 due to an unexpected tariff announcement [1] - Following the Trump Administration's retreat from extreme tariff proposals, the market saw a dramatic recovery [1] - Positive corporate earnings and solid economic data indicate potential economic growth ahead [1] Renaissance Investment Management Insights - The Renaissance Investment Small Cap Growth Strategy outperformed the Russell 2000 Growth Index in Q2 2025 [1] - The fund's investor letter highlighted Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) as a key stock, which reported a one-month return of -5.28% and a 52-week loss of 44.63% [2] Grid Dynamics Holdings, Inc. Analysis - Grid Dynamics Holdings, Inc. reported revenue of $101.1 million in Q2 2025, marking a 21.7% increase compared to Q2 2024 [4] - The company acknowledged a more uncertain macroeconomic outlook while maintaining its full-year revenue guidance [3] - Increased investments in AI are expected to pressure margins in the short term, but the company is well-positioned for digital transformation and AI adoption [3] Hedge Fund Interest - Grid Dynamics Holdings, Inc. was held by 12 hedge fund portfolios at the end of Q2 2025, a decrease from 20 in the previous quarter [4]

Company Overview - Grid Dynamics is a leading provider of technology consulting, platform & product engineering, AI, and digital engagement services for Fortune 1000 corporations undergoing digital transformation[8] - The company has a global presence with engineering centers and field locations across 19 countries, with a headcount distribution of 65% in Europe, 17% in the Americas, and 18% in the Rest of the World[6] - As of Q2 2025, Grid Dynamics has 5,013 employees, reflecting a year-over-year growth of 26.6% compared to 3,961 employees in Q2 2024[11, 12] Financial Performance (Q2 2025) - Total revenues reached $101.1 million, representing a 0.7% sequential increase and a 21.7% year-over-year increase[63] - GAAP gross profit was $34.5 million, or 34.1% of revenues[63] - Non-GAAP gross profit was $35.1 million, or 34.7% of revenues[63] - Non-GAAP EBITDA was $12.7 million, representing 12.6% of revenue[63] - GAAP EPS was $0.06, while Non-GAAP EPS was $0.10, with a diluted share count of 86.4 million[63] Strategic Initiatives and Growth - The company employs an "85–10–5 approach" to revenue growth, with 85% attributable to mature clients (relationship length >2 years), 10% to emerging clients (relationship length 1-2 years), and 5% to new logos (relationship length <1 year)[43] - Partner influenced revenues increased significantly from less than 1% to 18% over the past 3 years[46] - Grid Dynamics aims to reach $1 billion in annual revenue through its GigaCube strategic initiative, focusing on geo scalability, innovation, and industry expansion[47]

Company Overview - Grid Dynamics is a technology consulting, platform & product engineering, AI, and digital engagement services provider for Fortune 1000 corporations[8] - The company has a global presence with 4,900 employees across 19 countries[6] - The company's Q1 2025 revenue was $100.4 million, with expectations of $100.0 million to $102.0 million for Q2 2025[11] - The company's Q1 2025 GAAP EPS was $0.03, and non-GAAP EPS was $0.11[11] Financial Performance - Q1 2025 revenues reached $100.4 million, marking a 25.8% year-over-year increase[65] - GAAP gross profit for Q1 2025 was $37.0 million, representing 36.8% of revenues[65] - Non-GAAP gross profit for Q1 2025 was $37.6 million, or 37.4% of revenues[65] - Non-GAAP EBITDA for Q1 2025 was $14.6 million, which is 14.5% of revenue[65] Strategic Initiatives - The company employs an "85-10-5" approach to revenue growth, emphasizing organic growth from mature clients (85%), emerging clients (10%), and new logos (5%)[44] - Partner influenced revenues increased from less than 1% to 18% over the past 3 years[48] - The company aims to reach $1 billion in annual revenue through its GigaCube strategic initiative, focusing on geo scalability, innovation, and industry expansion[49]