Grid Dynamics Holdings, Inc. Q4 FY2025 earnings call

Key managerial messages include: AI driving growth with three factors - AI coding agents and automation tilting enterprises to rebuild at lower cost, GAIN enabling richer outcome and output-based engagements decoupling pricing from effort, and prioritizing investments in technology, financial services, and manufacturing for AI platform opportunities. Vertical strengths include Merchandising Experience Platform (MXP) generating revenue and delivering results, XTDB for financial industry with auditability, and physical AI investment in Incarno for robotics. CTO discussed three horizons: AI-first engineering with Rosetta, agentic enterprise expanding transformation, and physical AI with Incarno.

In the fourth quarter of 2025, Grid Dynamics achieved record revenue of $106.2 million and non-GAAP EBITDA of $13.7 million. The full year 2025 saw record revenue of $411.8 million, a 17.5% year-over-year growth, and non-GAAP EBITDA of $53.8 million. AI revenue in Q4 grew 9% over Q3, representing 25% of overall revenue, and for the full 2025, AI revenue reached over $90 million, 30% year-over-year growth. Vertical performance: Retail was the largest vertical in Q4 2025, contributing 28.7% of total revenues; TMT accounted for 28.3%; finance 22.9%; CPG and manufacturing 10.2%; other vertical 7.3%; healthcare and pharma 2.6%.

For the first quarter of 2026, revenues are expected to be in the range of $103 to $104 million, and non-GAAP EBITDA in the range of $12 to $13 million. For the full year 2026, revenues are expected to be in the range of $435 million to $465 million.

Q: Maggie Nolan asked about projects moving into production at scale and demand among customers.

A: Leonard and Eugene responded on AI-powered customer experience with visible ROIs and enterprise AI platforms scaling quickly.

Q: Brian Bergen asked about enterprises' preference for custom builds vs buy platform solutions.

A: Vasily and Leonard discussed increased demand for custom-built software and Grid Dynamics' benefit from this trend.

Q: Pruneet Jain asked about client behavior on AI and gain framework.

A: Vasily and Eugene talked about gain framework adoption, transition to outcome-based engagements, and AI's impact on productivity.

Q: Mayank Tandem asked about EBITDA margin expansion and M&A.

A: Anil and Yuri discussed margin expansion levers and M&A pipeline with strategic focus.

Q: Logan Hsu asked about hiring implications and partnership evolution.

A: Leonard and Vasily talked about hiring in relation to model shift and partnership evolution with hyperscalers and Temporal.