Filing Flows › Grid Dynamics Holdings (GDYN) › Q1 2025
Grid Dynamics Holdings (GDYN) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 1, 2025
Grid Dynamics Holdings (GDYN) reported revenue of $100M for the first quarter 2025 (Q1 2025), +26% from a year earlier and +0.1% from the quarter before. Operating margin was -2.0%, net earnings $2.9M (2.9% of revenue).
Grid Dynamics Holdings, Q1 2025: revenue $100M (+26% year over year), operating margin -2.0%, net earnings $2.9M, operating cash flow $9.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $100M | +0.1% | +26% |
| Operating profit | −$2.0M | — | — |
| Net earnings | $2.9M | — | — |
| Operating cash flow | $9.4M | +32% | +189% |
| Free cash flow | $6.0M | +36% | 140× |
What changed
Revenue was $100.4M in Q1 2025, up 26% year over year and roughly flat from the previous quarter. Retail was the largest line at 31% of revenue. Finance added $14.8M year over year (up 144%), 72% of the total change. Healthcare and Pharma declined 20%.
Gross margin was 36.8%, up 2.2 points from a year earlier. Operating costs exceeded revenue by $2.0M, an operating margin of -2.0%. Operating expenses grew 18% against revenue growth of 26%. The fastest-growing cost line was Research & development (+48%). Net earnings were $2.9M. The effective tax rate was -17.9%. Non-operating items added $4.5M, 183% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $9.4M (up 189% year over year), 321% of net earnings. Non-cash charges added back $4.7M of depreciation and amortization and $10.7M of share-based compensation. Working capital and other items used $9.0M. Capital expenditures of $3.3M left free cash flow of $6.0M.
Questions
What was Grid Dynamics Holdings' revenue in the first quarter 2025?
Grid Dynamics Holdings (GDYN) reported revenue of $100M for the first quarter 2025 (Q1 2025), +26% from a year earlier and +0.1% from the quarter before.
Was Grid Dynamics Holdings profitable in the first quarter 2025?
Operating loss was $2.0M (-2.0% of revenue) and net earnings $2.9M.