Grid Dynamics Q3 Revenue, $50M Buyback; FY Outlook Cut

Grid Dynamics reported Q3 2025 revenue of $104.2 million, up 19.1% year‑over‑year, and non‑GAAP EPS of $0.09, while GAAP gross margin fell to 33.3% and operating margin declined to -0.2%. Management guided Q4 revenue to about $106 million and provided EBITDA guidance of $13.5 million, and earlier in the period the company trimmed its full‑year 2025 sales outlook. The board authorized a $50 million share repurchase and the company highlighted geographic and vertical diversification and a roughly 4,971‑person global workforce supporting a “follow‑the‑sun” model. Despite solid top‑line growth driven by AI demand and strategic acquisitions, margins remain pressured and analysts have lowered earnings estimates. The stock has underperformed, down roughly 63.6% year‑to‑date, and Grid Dynamics carries a Zacks Rank #5 (Strong Sell). Investors will be watching management commentary and upcoming guidance for signs that margin‑expansion initiatives can restore profitability and confidence.