Press Release: Grid Dynamics Reports Second Quarter 2026 Financial Results

Revenues of $108.2 million and Record AI Revenues of 30.7%

SAN RAMON, Calif.--(BUSINESS WIRE)--July 30, 2026--

Grid Dynamics Holdings, Inc. (Nasdaq: GDYN) ("Grid Dynamics" or the "Company"), a leader in enterprise-level AI and digital transformation, today announced results for the quarter ended June 30, 2026.

Second Quarter 2026 Revenues Performance

We are pleased to report second quarter 2026 revenues of $108.2 million, slightly above the high end of our guidance range of $106.0 million to $108.0 million that we provided in April 2026.

Our Technology, Media and Telecom ("TMT") vertical was our principal growth driver, representing 31.8% of the second quarter revenues. TMT revenues increased 36.4% year-over-year, and 11.7% sequentially, driven by strong demand from our largest technology customers. Retail remained our second-largest vertical, contributing 26.5% of total revenues for the second quarter of 2026 driven by robust demand from key accounts. The Finance vertical contributed 22.9% of the second quarter revenues, supported by ongoing demand from our financial services engagements. Our Consumer Packaged Goods ("CPG") and Manufacturing vertical represented 10.9% of quarterly revenues and increased 2.1% sequentially. Lastly, the Healthcare and Pharma, and Other verticals contributed 1.9% and 6.0% of the total second quarter revenues, respectively.

"We delivered another solid quarter. Revenue came in above the high end of our guidance range. AI revenue crossed 30% of total company revenue for the first time and grew over 50% year-over-year for a second consecutive quarter. Our AI-based GAIN platforms are winning wider enterprise adoption as clients transition enterprise AI workloads from pilots to production. Our top accounts continue to drive our growth. Several of them delivered double-digit quarter-over-quarter growth. Additionally, Technology and Financial services verticals now define our most strategic customer relationships. These are precisely the sectors where AI adoption is moving the fastest and where our capabilities are the most differentiated. We also strengthened our Physical AI capabilities with the addition of Ekumen, giving us end-to-end depth from robotics software through enterprise-scale deployment.

Margin expansion continues to be a top priority. Productivity gains from AI-Native Delivery are showing up in our results. So is disciplined cost-control execution. Our second quarter performance, and our third quarter outlook, confirm we are on track to deliver our 300 basis point margin commitment," said Leonard Livschitz, Chief Executive Officer.

Second Quarter 2026 Financial Highlights

-- Total revenues were $108.2 million, up 3.9% on a sequential and 7.0% on a year-over-year basis. -- GAAP gross profit was $39.6 million, or 36.6% of revenues, compared to $34.5 million, or 34.1% of revenues, in the second quarter of 2025. -- Non-GAAP gross profit was $40.0 million, or 36.9% of revenues, compared to $35.1 million, or 34.7% of revenues, in the second quarter of 2025. -- GAAP net income was $2.9 million, or $0.03 per share, based on 83.0 million diluted weighted-average common shares outstanding in the second quarter of 2026, compared to $5.3 million, or $0.06 per share, based on 86.4 million diluted weighted-average common shares outstanding, in the second quarter of 2025. -- Non-GAAP net income was $9.0 million, or $0.11 per diluted share, based on 83.0 million diluted weighted-average common shares outstanding in the second quarter of 2026, compared to $8.3 million, or $0.10 per diluted share, based on 86.4 million diluted weighted-average common shares outstanding, in the second quarter of 2025. -- Non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization, other income and expenses, fair value adjustments, stock-based compensation, transaction and transformation-related costs, and restructuring costs as well as geographic reorganization expenses), a non-GAAP metric, was $14.7 million, compared to $12.7 million in the second quarter of 2025.

See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Information" below for a discussion of our non-GAAP measures.

Cash Flow and Other Metrics

-- Cash provided by operating activities was $14.5 million for the six months ended June 30, 2026, compared to $23.7 million for the six months ended June 30, 2025. -- Cash and cash equivalents totaled $298.4 million as of June 30, 2026, compared to $342.1 million as of December 31, 2025. -- Total headcount was 4,838 as of June 30, 2026, compared with 5,013 as of June 30, 2025.

Financial Outlook

Third Quarter

-- The Company expects revenues in the third quarter of 2026 to be in the range of $112.0 to $114.0 million. -- Non-GAAP EBITDA in the third quarter of 2026 is expected to be between $16.5 and $17.5 million. -- For the third quarter of 2026, we expect our basic share count to be in the 81 - 82 million range and diluted share count to be in the 83 - 84 million range.

Full Year

-- The Company expects full-year 2026 revenues to be in the range of $435.0 to $465.0 million.

Grid Dynamics is not able, at this time, to provide GAAP targets for net income/(loss) for the third quarter of 2026 because of the difficulty of estimating certain items excluded from Non-GAAP EBITDA that cannot be reasonably predicted, such as interest income, taxes, other income/(expenses), fair-value adjustments, geographic reorganization expenses, restructuring expenses, transaction-related costs and charges related to stock-based compensation expense. The effect of these excluded items may be significant.

Conference Call and Webcast

Grid Dynamics will host a video conference call at 4:30 p.m. ET on Thursday, July 30, 2026 to discuss its second quarter financial results. Investors and other interested parties can access a webcast of the video conference call on the Investor Relations section of the Company's website at https://www.griddynamics.com/investors.

A replay will also be available after the call at https://www.griddynamics.com/investors with the passcode $Q2@2026.

About Grid Dynamics

Grid Dynamics (Nasdaq: GDYN) is a premier AI transformation partner for the Fortune 1000. We combine deep AI expertise with proven enterprise-scale delivery to help clients identify where to invest in AI, build systems that work at scale, and capture real business value from AI deployments. A key differentiator for Grid Dynamics is our nearly two decades of technology leadership and pioneering enterprise AI expertise. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the Americas, Europe, and India.

To learn more about Grid Dynamics, please visit https://www.griddynamics.com. Follow us on LinkedIn.

Non-GAAP Financial Measures

To supplement the financial measures presented in this Grid Dynamics press release in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also presents non-GAAP measures of financial performance.

A "non-GAAP financial measure" refers to a numerical measure of Grid Dynamics historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Grid Dynamics provides certain non-GAAP measures as additional information relating to its operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity and profitability.

Grid Dynamics has included these non-GAAP financial measures because they are financial measures used by Grid Dynamics' management to evaluate Grid Dynamics' core operating performance and trends, to make strategic decisions regarding the allocation of capital and new investments and are among the factors analyzed in making performance-based compensation decisions for key personnel.

Grid Dynamics believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of core operations or do not require a cash outlay, such as stock-based compensation expense. Grid Dynamics believes these non-GAAP measures provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitate period to period comparisons of operations. Grid Dynamics believes these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. Grid Dynamics compensates for these limitations by providing investors and other users of its financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. Grid Dynamics encourages investors and others to review its financial information in its entirety, not to rely on any single financial measure, and to view its non-GAAP measures in conjunction with GAAP financial measures. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures attached to this release.

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