Highlights

  • Grid Dynamics increased quarterly revenue as AI exceeded thirty percent of sales and sustained growth above fifty percent.
  • The company improved gross margin and non-GAAP EBITDA, although GAAP net income declined compared with the prior-year quarter.
  • First-half operating cash flow fell year-over-year, and reported cash declined from the balance recorded at the previous year-end.
  • Management reiterated annual revenue guidance and forecast higher third-quarter revenue ahead of the scheduled late-October earnings release date.

AI passed a new revenue threshold at Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), accounting for more than 30% of second-quarter 2026 sales for the first time. The enterprise AI and digital transformation services company reported higher revenue and adjusted earnings, but lower GAAP profit and operating cash flow. Its 30 July results show the growing AI business alongside a more mixed financial picture.

AI Growth Leads the Revenue Mix

Quarterly revenue reached USD 108.2 million, up 7.0% year-over-year and 3.9% sequentially. That was slightly above the top of the company’s USD 106.0–108.0 million guidance range.

AI revenue grew more than 50% year-over-year for a second consecutive quarter. Crossing 30% of total revenue gives that business a larger role in the group’s reported sales mix, although the supplied summary does not disclose its standalone profit.

Profit Measures Tell Different Stories

GAAP gross margin improved to 36.6% from 34.1% a year earlier. GAAP net income nevertheless declined to USD 2.9 million, or USD 0.03 per diluted share, from USD 5.3 million.

Non-GAAP net income rose to USD 9.0 million, while non-GAAP EBITDA increased to USD 14.7 million from USD 12.7 million. The improvement in adjusted measures therefore accompanied a decline in the statutory bottom line.

The release reconciles items excluded from the adjusted measures. The supplied summary does not detail every adjustment, so it does not support assigning the entire difference to a particular cost or accounting item.

Cash and Staffing Move Lower

Cash totalled USD 298.4 million at 30 June, compared with USD 342.1 million at 31 December 2025. First-half operating cash flow was USD 14.5 million, down from USD 23.7 million a year earlier.

Headcount was 4,838, compared with 5,013 in the prior-year period. Revenue increased while the reported workforce was smaller, but the source does not quantify the separate effects of productivity, billing rates or staffing mix.

The cash-flow decline is also distinct from the higher non-GAAP EBITDA result. The document does not contain a complete bridge explaining the change in cash balances, so no single cause is assigned to that movement.

Guidance Precedes the October Report

For the third quarter, management guided to revenue of USD 112–114 million and non-GAAP EBITDA of USD 16.5–17.5 million. It reiterated full-year 2026 revenue guidance of USD 435–465 million.

The chief executive said the company remained on track for its 300-basis-point margin commitment. That statement and the financial ranges are forward-looking, rather than reported third-quarter results.

On 29 September, Grid Dynamics announced that it would release third-quarter results on 29 October. Other disclosed developments included Nikita Ivanov’s appointment as Head of AI on 26 August and a physical AI partnership with Doosan Robotics announced on 16 July for manufacturing and logistics.

Those appointments and partnerships add operational context but contain no quantified financial contribution in the supplied material. The next results will provide the dated comparison with management’s third-quarter targets.