Nagarro releases Q3 2025 results with 9.4% YoY revenue growth in constant currency and 27.2% YoY increase in Adjusted EBITDA; announces share redemption and buyback
MUNICH, Nov. 14, 2025 /CNW/ -- Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q3 2025 and released its nine-month financial statement.
In Q3 2025, revenue grew to €254.6 million, up 4.8% YoY from €242.9 million in Q3 2024, and up 9.4% YoY in constant currency. Organic YoY revenue growth for the quarter was 3.7% in Euro terms, and 8.2% in constant currency. Gross profit grew to €84.2 million in Q3 2025 from €76.5 million in Q3 2024. Gross margin was 33.1% in Q3 2025, against 31.5% in Q3 2024.
Adjusted EBITDA for Q3 2025 grew to €44.0 million (17.3% of revenue) from €34.6 million (14.3% of revenue) in Q3 2024. EBITDA grew to €43.5 million in Q3 2025 from €31.9 million in Q3 2024. EBIT grew to €34.9 million in Q3 2025 from €22.5 million in Q3 2024. Net profit grew to €21.4 million in Q3 2025 from €12.7 million in Q3 2024. The number of clients generating more than €1 million in annual revenue in the last 12 months with Nagarro increased marginally from 186 as of September 30, 2024, to 187 as of September 30, 2025.
The company's headcount increased by 233 professionals during Q3 2025.
Guidance 2025 maintained
The company maintains its previous guidance regarding full year 2025.
Redemption of treasury shares and share buyback
The company today resolved to redeem 853,688 treasury shares (75% of the 1,138,251 treasury shares currently held by the company) and buy back up to 450,000 shares with an overall purchase volume limit of EUR 20 million (excluding ancillary costs of purchase).
9M results
Revenue grew to €753.4 million in 9M 2025, up 3.9% YoY from €725.4 million in 9M 2024. Constant currency revenue growth for 9M 2025 was 6.3%. Organic YoY revenue growth for 9M 2025 was 3.0% in Euro terms, which translated to 5.4% organic YoY revenue growth in constant currency. Gross profit grew to €243.5 million in 9M 2025 from €223.5 million in 9M 2024. Gross margin was 32.3% in 9M 2025, against 30.8% in 9M 2024.
Despite excellent operational efficiency in 9M 2025, Adjusted EBITDA was significantly impacted by the revaluation loss on intra-group loans within the Nagarro group due to the weakening of the US dollar against the Euro. Across 9M 2025, the total impact on Adjusted EBITDA of currency revaluation plus foreign exchange forward transactions was a negative €19.7 million.
Consequently, Adjusted EBITDA for 9M 2025 declined to €104.8 million (13.9% of revenue) from €109.3 million (15.1% of revenue) in 9M 2024. EBITDA grew to €108.5 million in 9M 2025 from €100.7 million in 9M 2024. EBIT grew to €82.3 million in 9M 2025 from €72.2 million in 9M 2024. Net profit declined marginally to €41.0 million in 9M 2025 from €41.3 million in 9M 2024, mainly due to negative foreign currency impact and an increase in income tax expense on account of withholding taxes on intra-group dividend remitted by subsidiaries to their immediate holding companies. This has been offset by an increase in gross margin during the period.
Operating cash inflow in 9M 2025 increased to €77.1 million from €64.9 million in 9M 2024, even while factoring utilization under the non-recourse factoring program reduced by €7.9 million in 9M 2025 from December 31, 2024. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 88 days on December 31, 2024, to 85 days on September 30, 2025.
Nagarro's cash balance at the end of September 30, 2025, was €129.4 million as against €192.6 million at the end of December 31, 2024. Nagarro's loans and borrowings at the end of September 30, 2025, were €301.2 million as against €329.6 million at the end of December 31, 2024. The company reported 17,680 professionals as of September 30, 2025.
The summarized table for the three-month period ended September 30, 2025, is as follows:
| |
|
Q3 2025 |
|
Q3 2024 |
|
Growth |
| |
|
mEUR |
|
mEUR |
|
|
| Revenue |
|
254.6 |
|
242.9 |
|
4.8% YoY |
| Gross profit |
|
84.2 |
|
76.5 |
|
10.0% YoY |
| Gross margin |
|
33.1 % |
|
31.5 % |
|
|
| Adjusted EBITDA |
|
44.0 |
|
34.6 |
|
27.2% YoY |
| Adjusted EBITDA margin |
|
17.3 % |
|
14.3 % |
|
|
| EBITDA |
|
43.5 |
|
31.9 |
|
36.4% YoY |
| EBIT |
|
34.9 |
|
22.5 |
|
55.0% YoY |
| Net profit |
|
21.4 |
|
12.7 |
|
68.0% YoY |
| |
|
|
|
|
|
|
The summarized table for the nine-month period ended September 30, 2025, is as follows:
| |
|
9M 2025 |
|
9M 2024 |
|
Growth |
| |
|
mEUR |
|
mEUR |
|
|
| Revenue |
|
753.4 |
|
725.4 |
|
3.9% YoY |
| Gross profit |
|
243.5 |
|
223.5 |
|
9.0% YoY |
| Gross margin |
|
32.3 % |
|
30.8 % |
|
|
| Adjusted EBITDA |
|
104.8 |
|
109.3 |
|
Negative 4.1% YoY |
| Adjusted EBITDA margin |
|
13.9 % |
|
15.1 % |
|
|
| EBITDA |
|
108.5 |
|
100.7 |
|
7.8% YoY |
| EBIT |
|
82.3 |
|
72.2 |
|
14.0% YoY |
| Net profit |
|
41.0 |
|
41.3 |
|
Negative 0.8% YoY |
| |
|
|
|
|
|
|
Nagarro SE will hold its analyst and investor earnings call to discuss the Q3 2025 financial statement on November 14, 2025, at 01:00 pm CET (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm GMT / 04:00 pm GST / 05:30 pm IST / 08:00 pm SGT / 09:00 pm JST).
To attend, please register in advance at https://www.nagarro.com/en/investor-relations/quarterly-statement-call-q3-2025.
About Nagarro
Nagarro, a global digital engineering leader, helps clients become fluidic, innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its Fluidic Intelligence vision. Nagarro employs around 17,700 people in 39 countries.
For more information, visit www.nagarro.com.
(FRA: NA9) (SDAX/TecDAX: DE000A3H2200) (ISIN: DE000A3H2200) (WKN A3H220)
For inquiries, please contact [email protected].
Logo: https://mma.prnewswire.com/media/844192/3850575/Nagarro_Logo.jpg
SOURCE Nagarro
Michael Knapp | [email protected] | +1 415 377 0121
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