Grid Dynamics Holdings, Inc.

Q2 consolidated revenue was $108.2 million, up 7% year over year and slightly above the top end of the $106 million-$108 million guidance range. Non-GAAP EBITDA was $14.7 million, or 13.6% of revenue, and GAAP gross profit was $39.6 million, or 36.6%, versus $34.5 million, or 34.1%, in the year-ago quarter; non-GAAP gross profit was $40.0 million, or 36.9%, versus $35.1 million, or 34.7% a year ago. GAAP net income was $2.9 million, or $0.03 per share, and non-GAAP net income was $9.0 million, or $0.11 per share. Cash and cash equivalents were $298.4 million at June 30, 2026, and the company repurchased about 2.6 million shares for $17.3 million in the quarter. For Q3 2026, management guided revenue to $112 million-$114 million and non-GAAP EBITDA to $16.5 million-$17.5 million; full-year 2026 revenue guidance was maintained at $435 million-$465 million.

Leonard Livschitz framed the quarter as evidence that the company is executing well across three priorities: improving revenue trends, AI adoption, and profitability. He emphasized that AI is becoming a sustained shift rather than a short-lived spike, with AI-first delivery and fixed-price work increasingly becoming the norm. He also highlighted physical AI and robotics as a new strategic frontier, alongside deeper client relationships, especially in technology and financial services.

Anil Doradla walked through the quarter’s financial improvements, citing revenue of $108.2 million, non-GAAP EBITDA of $14.7 million, GAAP gross margin of 36.6%, and non-GAAP gross margin of 36.9%. He said the gross margin improvement was driven by revenue growth outpacing delivery cost year over year and better working time plus resource utilization sequentially. He also noted cash of $298.4 million, share repurchases of 2.6 million shares for $17.3 million in Q2, and reiterated the company’s plan to deliver 300 basis points of margin expansion over time while maintaining 2026 revenue guidance.

Analysts focused on whether AI will be accretive or dilutive over the next 12-24 months, and management argued that AI is already helping growth and profitability through higher productivity, more fixed-price work, and larger programs. They also pressed on visibility into the second half and 2027; management pointed to seasonal second-half strength, higher billable headcount, acquisitions as a possible contributor, and deeper client relationships that should broaden growth beyond technology. Another topic was margin expansion and headcount mix: management said recent headcount reductions were mainly non-billable/non-engineering, not billable staff, and that some onshoring is increasing because AI and complex client work require more direct collaboration.