Nagarro presents Q2 and H1 2026 numbers, posts 2.0% and 4.2% YoY revenue growth in constant currency in Q2 and H1 2026, respectively

Rhea-AI Summary

Nagarro (OTC:NGRRF) reported Q2 2026 revenue of €252.4 million, up 0.2% YoY in euros and 2.0% in constant currency. Organic revenue grew 0.6% in constant currency but declined 1.1% in euros. Gross profit fell to €81.8 million with a 32.4% margin.

Q2 adjusted EBITDA rose to €37.8 million (15.0% margin), while EBITDA dropped to €27.7 million and EBIT to €19.2 million, mainly due to a €12.0 million YoY swing in share-based payment costs. Net profit increased to €10.6 million, supported by the absence of withholding tax on intra-group dividends.

For H1 2026, revenue reached €500.5 million, 0.3% higher in euros and 4.2% in constant currency, with broadly stable gross margin at 31.8%. Adjusted EBITDA rose to €69.1 million, EBITDA to €66.5 million, and net profit to €29.8 million. Q2 operating cash inflow improved to €29.8 million, though H1 operating cash inflow declined to €29.5 million. Cash stood at €131.3 million against loans and borrowings of €310.5 million, and the company had 18,711 professionals and 184 clients generating over €1 million each. A €1.00 per share dividend totaling €12.4 million was approved. An earnings call is scheduled for August 14, 2026.

Positive

• Q2 2026 revenue €252.4m, 2.0% YoY growth in constant currency
• H1 2026 revenue €500.5m, 4.2% YoY growth in constant currency
• Q2 adjusted EBITDA €37.8m, up 23.9% YoY; margin 15.0%
• H1 adjusted EBITDA €69.1m, up 13.7% YoY; margin 13.8%
• Q2 net profit €10.6m, up 27.7% YoY
• H1 net profit €29.8m, up 52.0% YoY
• Q2 operating cash inflow €29.8m vs €4.9m in Q2 2025
• Cash balance €131.3m at June 30, 2026, up from €124.6m year-end
• Large clients 184 accounts over €1m LTM revenue as of June 30, 2026
• Dividend €1.00 per share, total €12.4m, 14.9% of 2025 EBIT

Negative

• Q2 organic revenue -1.1% YoY in euros despite 0.6% constant-currency growth
• H1 organic revenue -1.1% YoY in euros despite 2.7% constant-currency growth
• Q2 gross profit €81.8m vs €83.7m; margin down from 33.2% to 32.4%
• Q2 EBITDA €27.7m, down 13.4% YoY
• Q2 EBIT €19.2m, down 17.9% YoY
• H1 operating cash inflow €29.5m vs €42.4m in H1 2025

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MUNICH, Aug. 14, 2026 /PRNewswire/ -- Today, Nagarro, a global AI transformation and engineering leader, presented its unaudited financial numbers for Q2 2026 and H1 2026, and released its half-yearly financial report.

Q2 results

In Q2 2026, revenue grew to €252.4 million, up from €252.0 million in Q2 2025. On a constant-currency basis, YoY revenue growth was 2.0%, which translated to growth of 0.2% in Euro terms. Organic YoY revenue growth for the quarter was 0.6% in constant currency, which translated to negative 1.1% in Euro terms. Gross profit declined to €81.8 million (32.4% of revenues) in Q2 2026 from €83.7 million (33.2% of revenues) in Q2 2025. Adjusted EBITDA increased to €37.8 million (15.0% of revenue) in Q2 2026, up from €30.5 million (12.1% of revenue) in Q2 2025.

EBITDA declined to €27.7 million in Q2 2026, from €32.0 million in Q2 2025. While adjusted EBITDA grew by €7.3 million year-on-year, EBITDA decreased by €4.3 million, primarily due to YoY increase in share-based payment arrangements cost of €12.0 million (expense of €8.1 million in Q2 2026, against an income of €3.9 million in Q2 2025). For the same reason, EBIT declined to €19.2 million in Q2 2026 from €23.4 million in Q2 2025. Net profit increased to €10.6 million in Q2 2026, up from €8.3 million in Q2 2025 mainly due to absence of withholding tax expense on intra-group dividends. The number of clients generating more than €1 million revenue in last 12-month period was 184 as of June 30, 2026, up from 179 as of March 31, 2026.

Operating cash inflow in Q2 2026 increased to €29.8 million from €4.9 million in Q2 2025 primarily due to higher collections from trade receivables and lower taxes paid.

At the Annual General Meeting held on June 29, 2026, a dividend of €1.00 per share, amounting to €12.4 million and representing 14.9% of 2025 EBIT, was declared. This compares with a dividend of €1.00 per share, amounting to €12.6 million and representing 13.1% of 2024 EBIT, declared at the AGM held on June 30, 2025.

H1 results

In H1 2026, Nagarro's revenues increased to €500.5 million in H1 2026, up from €498.9 million in H1 2025. On a constant-currency basis, YoY revenue growth was 4.2%, which translated into growth of 0.3% in Euro terms. Organic YoY revenue growth was 2.7% in constant currency, which translated into negative 1.1% in Euro terms. Gross profit and gross margin remained broadly stable at €159.2 million (31.8% of revenues) in H1 2026, compared with €159.3 million (31.9% of revenues) in H1 2025. Adjusted EBITDA increased to €69.1 million (13.8% of revenue) in H1 2026, up from €60.8 million (12.2% of revenue) in H1 2025.

EBITDA increased to €66.5 million in H1 2026 from €65.0 million in H1 2025. EBIT increased to €49.2 million in H1 2026 from €47.5 million in H1 2025. Net profit increased to €29.8 million in H1 2026, up from €19.6 million in H1 2025.

Operating cash inflow in H1 2026 declined to €29.5 million from €42.4 million in H1 2025 due to pending collections from some clients, which are being collected in Q3 2026. Days of sales outstanding (DSO), calculated based on the quarterly revenue, and including both contract assets and trade receivables, has stayed flat at 86 days on June 30, 2026 from March 31, 2026.

Nagarro's cash balance as of June 30, 2026 was €131.3 million, up from €124.6 million at the end of December 31, 2025. Nagarro's loans and borrowings remained broadly stable at €310.5 million as of June 30, 2026, compared with €310.1 million as of December 31, 2025. The company reported 18,711 professionals as of June 30, 2026.

The summarized table for the three-month period ended June 30, 2026 is as follows:

		Q2 2026		Q2 2025		Growth
		mEUR		mEUR
Revenue		252.4		252.0		0.2% YoY in Euro 2.0% YoY in constant currency
Gross profit		81.8		83.7		Negative 2.3% YoY
Gross margin		32.4 %		33.2 %
Adjusted EBITDA		37.8		30.5		23.9% YoY
Adjusted EBITDA margin		15.0 %		12.1 %
EBITDA		27.7		32.0		Negative 13.4% YoY
EBIT		19.2		23.4		Negative 17.9% YoY
Net profit		10.6		8.3		27.7% YoY

The summarized table for the six-month period ended June 30, 2026 is as follows:

		H1 2026		H1 2025		Growth
		mEUR		mEUR
Revenue		500.5		498.9		0.3% YoY in Euro 4.2% YoY in constant currency
Gross profit		159.2		159.3		Negative 0.1% YoY
Gross margin		31.8 %		31.9 %
Adjusted EBITDA		69.1		60.8		13.7% YoY
Adjusted EBITDA margin		13.8 %		12.2 %
EBITDA		66.5		65.0		2.3% YoY
EBIT		49.2		47.5		3.6% YoY
Net profit		29.8		19.6		52.0% YoY

Nagarro SE will hold its earnings call to discuss half-yearly financial report 2026 on August 14, 2026, at 01:00 pm CEST (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm BST / 03:00 pm GST / 04:30 pm IST / 07:00 pm SGT / 08:00 pm JST).

To attend, please register in advance at https://www.nagarro.com/en/investor-relations/half-yearly-q2-statements-call-2026.

About Nagarro

Nagarro is a global AI-native engineering and transformation company that engineers intelligence into enterprises securely, responsibly, and at scale. Distinguished by its entrepreneurial, agile, and global character, Nagarro is guided by its CARING values. The company employs around 18,700 people across 39 countries. For more information, visit www.nagarro.com.

(FRA: NA9) (SDAX) (ISIN: DE000A3H2200) (WKN: A3H220)

 

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SOURCE Nagarro

FAQ

How did Nagarro (NGRRF) perform financially in Q2 2026?

Nagarro reported Q2 2026 revenue of €252.4 million, up 0.2% year-on-year in euros and 2.0% in constant currency. According to Nagarro, adjusted EBITDA rose to €37.8 million, while net profit increased to €10.6 million compared with €8.3 million in Q2 2025.

What were Nagarro (NGRRF) H1 2026 revenue and profit figures?

Nagarro’s H1 2026 revenue reached €500.5 million, 0.3% higher in euros and 4.2% higher in constant currency year-on-year. According to Nagarro, net profit for H1 2026 was €29.8 million, compared with €19.6 million in H1 2025, while gross margin remained broadly stable at 31.8%.

Why did Nagarro’s Q2 2026 EBITDA and EBIT decline while adjusted EBITDA increased?

Adjusted EBITDA grew to €37.8 million in Q2 2026, but EBITDA fell to €27.7 million and EBIT to €19.2 million. According to Nagarro, this divergence mainly reflects a €12.0 million year-on-year increase in share-based payment arrangements cost, shifting from income in Q2 2025 to expense in Q2 2026.

What dividend did Nagarro (NGRRF) declare at the June 2026 AGM?

Nagarro declared a dividend of €1.00 per share at the Annual General Meeting on June 29, 2026, totaling €12.4 million. According to Nagarro, this payout represented 14.9% of 2025 EBIT, broadly similar to the prior year’s €1.00 per share dividend.

How did Nagarro’s operating cash flow and cash position change in H1 2026?

Nagarro generated H1 2026 operating cash inflow of €29.5 million, down from €42.4 million in H1 2025, due to pending client collections. According to Nagarro, cash balance increased to €131.3 million at June 30, 2026, while loans and borrowings stayed broadly stable at €310.5 million.

What was Nagarro’s organic revenue growth in Q2 and H1 2026?

Organic revenue grew in constant currency but declined in euros. According to Nagarro, Q2 2026 organic growth was 0.6% in constant currency and -1.1% in euros, while H1 2026 organic growth was 2.7% in constant currency and -1.1% in euros.

When is Nagarro’s earnings call for the half-year 2026 results?

Nagarro scheduled its half-year 2026 earnings call for August 14, 2026, at 01:00 pm CEST. According to Nagarro, investors can register in advance through the company’s investor relations webpage dedicated to the half-yearly Q2 2026 statements call for global time-zone access details.